Global spending on data centres is accelerating at an unprecedented pace, with Morgan Stanley projecting expenditures could reach nearly US$3 trillion by 2028. Hyperscalers including Amazon, Microsoft, Google, and Meta are expected to contribute roughly US$1.4 trillion, while the remainder will primarily come from private credit markets, according to The Guardian.
AI and Cloud Demand Driving Rapid Expansion
The surge in investment is fueled by the rising demand for artificial intelligence and cloud computing infrastructure. Data centres are increasingly seen as the backbone of future digital services, powering AI workloads, enterprise cloud solutions, and large-scale computing operations.
Financial Risks and Speculative Financing
Analysts caution that the rapid buildout, often relying on speculative financing—where capacity is built before guaranteed demand exists—could expose the global economy to financial vulnerabilities. “The datacentre ecosystem has become the new real estate rush,” one industry expert told The Guardian. “If demand slows or AI efficiency improves faster than expected, a lot of this capital could be stranded.”
Operational Challenges and Systemic Concerns
Recent reports highlight developers struggling to secure grid connections and land permits, causing delays. Meanwhile, lenders are increasingly filling funding gaps left by traditional banks, raising concerns about potential systemic financial risks that could ripple beyond the tech sector.
The Future of Data Centre Infrastructure
Despite warnings, major tech firms continue to invest heavily in digital infrastructure, viewing it as essential for the next decade of AI, cloud, and digital services. Analysts suggest that while the expansion promises transformative capabilities, the pace and scale of spending carry a potentially steep financial cost.
