(Oct 23): Global data centre spending is expected to hit US$1 trillion (RM4.1 trillion) in 2026 and more than double to US$2.1 trillion by 2028, BofA Global Research estimated in a note on Friday, driven by growing demand for and development of AI services.

Data centre spending has been a fast-growing source of revenue for industrial firms that make generators, construction equipment, switchgears and chillers.

The data centre market, worth US$275 billion in 2022, could reach US$2.93 trillion by 2030, BofA said.

AI is seen driving the expansion, which the brokerage says will fuel a 37% market-wide CAGR from 2025 to 2030, the brokerage said.

Chipmakers and server developers have been among the biggest beneficiaries of the AI-driven data centre buildout, particularly in the US.

BofA put data centre construction costs at US$49 million per megawatt, with IT-related expenses making up 78% of total spend.

Neoclouds, or AI-focused data centres, cost about US$57 million per megawatt but benefit from lower space requirements than traditional counterparts.

The brokerage estimates servers are the costliest component at US$31.4 million per megawatt, and networking the second-largest at US$4.8 million per megawatt.

Most other functions — switchgear, power distribution, generators, backup power, chillers and cooling — cost between US$100,000 to US$1.1 million per megawatt.

Uploaded by Magessan Varatharaja