The global race to power AI has turned the once-humble data center into the hottest real estate on the planet.
Global investment in data centers climbed past $61 billion in 2025, setting a new high as companies race to support fast-growing AI workloads, according to data from S&P Global Market Intelligence, first reported by CNBC.
The figure already beats the full-year total for 2024, underscoring how central data centers have become to the AI boom. More than 100 deals were recorded in the first 11 months of the year, covering mergers, asset sales, and equity investments.
S&P Global described the trend as a “global construction frenzy” driven by the heavy computing and power needs of generative AI systems.
AI demand drives construction surge
At the heart of the spending wave is AI. From large language models to image and video generation tools, companies need massive amounts of computing power, and that power lives inside data centers.
S&P Global analyst Iuri Struta noted that investors who cannot find assets to buy are increasingly choosing to build from scratch. “Unable to buy, many investors are turning to new builds,” Struta wrote.
The research firm expects the global data center footprint to expand faster over the next five years than it did over the previous five, largely because AI workloads consume far more energy and computing resources than traditional cloud services.
The US pulls ahead, Middle East gains ground
The US remains the largest destination for data center investment, followed by the Asia-Pacific region. Since 2019, dealmaking in the US and Canada has totaled about $160 billion, far ahead of Europe and Asia-Pacific.
One of the biggest contributors this year was the $40 billion acquisition of Aligned Data Centers, a deal involving private equity firms and major AI players.
Europe, meanwhile, is growing at a slower pace. “In Europe, the buildout of data centers is expected to grow at a lower rate than other regions, but it remains to be seen if this results in an M&A rush amid scarcity of assets,” Struta told CNBC.
Growth is also accelerating in the Middle East, where Gulf states are investing heavily to position themselves as future AI hubs.
Debt plays a bigger role
A major feature of 2025’s boom is how it is being financed. According to S&P Global, debt issuance nearly doubled this year, rising to about $182 billion, as hyperscalers increasingly turn to outside capital rather than funding projects entirely on their own balance sheets.
Companies such as Meta, Google, and Amazon were among the most active borrowers. Meta alone has raised $62 billion in debt since 2022, with nearly half of that issued this year. This approach has raised concerns among some investors, especially amid questions about AI valuations and long-term returns.
AI-linked stocks saw volatility in November amid fears of overspending and a possible bubble. Still, analysts say the pullback is unlikely to derail data center expansion.
“Overall, we see demand for AI applications continuing to grow strongly in 2026,” Struta told CNBC. ING also expects investment to remain healthy next year, pointing to long-term digital trends and continued public and private support for AI infrastructure, CNBC reported.
Despite questions over costs, power supply, and long-term returns, analysts expect data center investment to remain elevated into next year. With AI workloads expanding and new facilities still coming online, the sector shows few signs of cooling, even as scrutiny around financing and energy use grows louder.
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