Data center investment reached a record $61 billion this year

Data center M&A and investment hit record levels in 2025, according to new research, with more than 100 data center transactions in the first 11 months of the year.

The value of M&A, asset sales, and equity investments is already higher than the full-year 2024 record of just under $61 billion, according to S&P Global Market Intelligence data.

The boom is being fueled by a combination of factors, including hyperscaler expansion, private equity interest, and a surge in debt financing.

"We're seeing enormous growth in data centers and even acceleration," said Wim Steenbakkers, managing director at investment relations firm ING, during a recent press briefing.

"We do see a trend where the US has taken a lead, with Middle East growth eclipsing Europe at the moment."

The US has been leading the pack in terms of total deal value over the last two years, with the US and Canada totaling about $160 billion since 2019. In the same period, Asia-Pacific investment has hit nearly $40 billion, and Europe has totaled $24.2 billion.

Global data center footprints are projected to expand at a faster rate over the next five years than it has done in the previous five, spurred by demand for energy and compute-intensive AI workloads.

Bullish investment expected to continue

According to S&P Global, many investors are turning to new builds. Hyperscalers are making major investments, leveraging strong balance sheets and massive free cash flow to build new sites, while also looking for outside capital in the form of debt and collaboration with financial sponsors.

"The number of data centers being built by hyperscalers nearly doubled in 2024 from a post-pandemic low, while their total utility power more than doubled, according to 451 Research data," said S&P Global senior research associate Iuri Struta.

"This growth is expected to extend into 2026, with 114 hyperscaler data centers planned or under construction."

Struta noted that hyperscalers, frontier AI labs, and chipmakers are teaming up to buy assets or finance their construction, in a sign of the significant capital requirements needed to achieve the desired data center growth.

Meta, for example, partnered with Blue Owl Capital to build its 2.4 GW Hyperion data center, while late last year Microsoft and MGX Fund Management teamed up to create a $100 billion fund that would invest in data centers and power infrastructure.

Earlier this year, McKinsey researchers concluded that, by 2030, data centers will require $6.7 trillion worldwide to keep pace with the demand for compute power.

Those equipped to handle AI processing loads are projected to require $5.2 trillion in capital expenditures, while those powering traditional IT applications are projected to require $1.5 trillion in capital expenditures - nearly $7 trillion in total capital outlay.

"Investors will need to understand demand projections amid uncertainty. Companies should assess AI computing needs early, anticipate potential shifts in demand, and design scalable investment strategies that can adapt as AI models and use cases evolve. Second, investors should find ways to innovate on compute efficiency, McKinsey said.

"Third, they can build supply-side resilience to sustain AI infrastructure growth without overextending capital. This will require investors to secure critical inputs such as energy and chips, optimize site selection, and build flexibility into their supply chains."

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