BofA Global Research projected in a 23 October note that global data centre spending will reach $1 trillion in 2026 and more than double to $2.1 trillion by 2028, Reuters reported. The forecast links the expansion to growing demand for, and development of, AI services.
Key points
- BofA projects global data centre spending of $1 trillion in 2026 and $2.1 trillion by 2028.
- The bank says the market, worth $275 billion in 2022, could reach $2.93 trillion by 2030.
- BofA estimates construction costs of $49 million per megawatt, with IT-related expenses accounting for 78 per cent.
- Servers are the largest cost component in the bank’s estimate, at $31.4 million per megawatt, followed by networking at $4.8 million.
BofA’s $2.93 trillion projection for 2030
BofA put the data centre market at $275 billion in 2022 and said it could reach $2.93 trillion by 2030. Its spending forecasts for 2026 and 2028 sit within that longer projection, which the bank attributes to the expansion of AI services.
The brokerage estimates a 37 per cent compound annual growth rate for the market from 2025 to 2030. That measure describes projected growth across the period, while the $1 trillion and $2.1 trillion figures are its spending estimates for individual years.
Reuters reported that data centre spending has become a growing source of revenue for industrial companies making generators, construction equipment, switchgear and chillers. Those suppliers serve different parts of a build from the chipmakers and server developers that Reuters identified as among its biggest beneficiaries, particularly in the United States.
The bank’s forecast covers global spending rather than a commitment by any one operator. Its cost estimates set out how much of a data centre build is allocated to computing equipment and how much goes to other components of the facility.
Servers take $31.4 million per megawatt
BofA estimates data centre construction costs at $49 million per megawatt. It assigns 78 per cent of total spending to IT-related expenses, putting equipment at the centre of its construction-cost estimate.
Servers are the costliest component at $31.4 million per megawatt, according to the brokerage. Networking comes next at $4.8 million per megawatt. Both figures are expressed against a megawatt of capacity, allowing the bank to describe the equipment costs alongside its overall construction estimate.
The allocation places the largest cost line with the hardware used to run data centre workloads. Reuters reported that US chipmakers and server developers rank among the principal beneficiaries of expanding AI data centres. The bank’s figures separately identify networking as the next-largest component.
BofA’s neocloud estimate is about $57 million per megawatt
For neoclouds, the AI-focused data centres in BofA’s comparison, the brokerage estimates a cost of about $57 million per megawatt. That is above its $49 million per megawatt estimate for data centre construction more broadly. BofA also says neoclouds require less space than traditional counterparts.
The neocloud estimate gives the bank’s forecast a separate cost figure for facilities focused on AI. Its broader construction estimate includes IT-related spending as well as the equipment needed to distribute power, provide backup power and cool the site.
BofA estimates that most remaining site equipment — electrical switching and routing, on-site generation, emergency electricity supply, refrigeration machinery and temperature control — costs between $100,000 and $1.1 million per megawatt.
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