Original article shared by McKinsey in August, 2025
Data centers represent the foundational infrastructure that fuels the many digital services that individuals, businesses, and governments rely on every day. This backbone of the digital economy is poised for significant growth as the demand for cloud computing and AI accelerates. States across the United States are already seeing a surge in interest and investment from hyperscalers and colocation providers1 looking to build out data centers.
Our analysis shows that by 2030, companies will invest almost $7 trillion in capital expenditures on data center infrastructure globally.2 More than $4 trillion of it will go toward computing-hardware investments, with the balance going toward areas such as real estate and power infrastructure (Exhibit 1). More than 40 percent of this spending will be invested in the United States.
While much is still unknown about AI’s growth trajectory and the related economic dynamics, the scale of AI investment could drive significant GDP growth, create thousands of high-paying jobs, and spur innovation across various sectors. Significant challenges exist, however—from infrastructure needs to consumer backlash—and state governments should develop a clear view of the true costs and benefits as they weigh their strategies.
Demand growth and shifts in data centers
Our analysis shows that global demand for data center capacity can more than triple by 2030, with a compound annual growth rate (CAGR) of around 22 percent (Exhibit 2). In the United States, data center demand could grow by 20 to 25 percent per year over the same period.
About 70 percent of that projected 2030 demand will come from hyperscalers, a trend already evident in the recent announcements of tech giants partnering with various US states to invest billions in constructing large-scale data center sites. Hyperscalers are working on building large campuses to capture the value of colocated compute, resulting in sites that often cover hundreds of acres.
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