BofA forecasts data center spending doubling to $2.1 trillion by 2028
Bank of America Global Research projects global data center outlays will climb from $1 trillion this year, with chipmakers and server builders as top beneficiaries.
Global spending on data centers will rise from $1 trillion this year to $2.1 trillion in 2028, according to a forecast published by Bank of America Global Research on October 23, as reported by inews24.com.
The bank also projected that the data center market could grow from $275 billion in 2022 to $2.93 trillion by 2030, averaging 37% annual growth between 2025 and 2030.
BofA named semiconductor makers and server developers as the biggest beneficiaries of the expansion. Among memory chip makers, the report's scope includes Samsung Electronics, SK hynix, Micron Technology, Kioxia and Solidigm.
Equipment dominates build costs
IT equipment such as servers and networking gear accounts for 78% of typical data center construction costs, according to BofA. AI-specialized data centers cost more to build than ordinary facilities per unit of power capacity, Reuters reported.
In 2022, the data center market was valued at $275 billion, according to BofA, a figure the new forecast puts in the context of a multi-year build-out.
Quick answers
How much will global data center spending reach by 2028?
Bank of America Global Research forecasts it will reach $2.1 trillion in 2028, up from $1 trillion this year.
Who benefits most from data center growth, according to BofA?
Semiconductor makers and server developers were identified as the biggest beneficiaries.
What share of data center construction costs goes to IT equipment?
Servers and networking gear make up 78% of typical data center construction costs, according to BofA.