By 2030, nearly 100 gigawatts of new data centers will be added globally, doubling current capacity. This expansion demands up to $3 trillion in investment to power the artificial intelligence boom. The global data center sector is projected to grow at a 14% CAGR through 2030, according to JLL.
The artificial intelligence market projects significant growth, but its critical data center infrastructure faces a supercycle of escalating costs. This demands massive, concentrated investment from key players.
Companies will likely face increasing competition and costs for essential AI infrastructure. This could slow broader AI adoption, as many entities are unprepared for the scale of investment required.
How Much Are Digital Foundations Costing?
Data center construction costs are soaring. The average global cost per megawatt was $10.7 million in 2025, a 7% Compound Annual Growth Rate (CAGR) from 2020, according to JLL. General inflation exacerbates this; Consumer Price Index (CPI) inflation rose from 2.4% in early 2026 to 3.8% in April, according to Deloitte. This relentless cost curve, combined with the projected $3 trillion investment needed by 2030, means companies building AI infrastructure face significant financial pressure. These costs will inevitably pass to AI developers and end-users, potentially slowing innovation or making advanced AI prohibitively expensive.
What Do M&A Trends Suggest for Data Centers?
M&A trends suggest a cautious market, yet data centers are booming. Mega deals made up over 40% of US M&A value in Q1 2026, while overall volume stayed flat, according to Deloitte. Mega deals made up over 40% of US M&A value in Q1 2026, while overall volume stayed flat, according to Deloitte, indicates consolidation. Further, only 20% of survey respondents showed significant interest in cross-border transactions, suggesting hesitant broader investment. Yet, JLL describes a 'supercycle' in the data center sector, projecting a $3 trillion investment to double global capacity by 2030. This stark contrast implies the data center market's hyper-growth is isolated, likely driven by a few dominant players rather than broad market participation.
