Global Data Center Investment to Exceed $580 Billion by 2025, Surpassing Oil Sector Investments
Colliers reports that global investment in data centers will exceed $580 billion by 2025, a 27% increase from the previous year, marking the first time data center investment surpasses that of oil refineries. The increase is driven mainly by AI investments, with tech companies contributing $445 billion. However, challenges such as financing, energy supply, and construction delays pose significant risks to the sector.
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Colliers forecasts global data center investments to surpass $580 billion by 2025, reflecting a 27% increase year-on-year and overtaking oil refinery investments for the first time. AI-driven investments account for a significant portion, with technology firms contributing $445 billion.
The development of data centers hinges on access to financing, reliable energy, and realistic commissioning timelines. Despite substantial capital raises, delays from licensing, supply chain issues, and energy disruptions have postponed over $64 billion in projects.
Energy infrastructure costs consume 40% to 50% of project budgets. Concerns over private investment risks grow as Colliers highlights significant debt levels among tech firms, with over $1.3 trillion in loans, predominantly held by major AI companies. Moody's warns of potential overbuilding risks and credit rating downgrades if growth expectations are unmet.
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