Global Data Center Capacity to Nearly Triple by 2030, Driven by AI Demand
The global data center capacity is set to nearly triple by 2030, with a staggering 70% of this growth fuelled by the increasing demand for AI workloads. This surge in data center expansion is expected to drive significant investments, reaching a colossal $7 trillion over the next five years.
The AI revolution has already begun to reshape global markets. The S&P 500 and Nasdaq Composite have reached repeated all-time highs in recent years, reflecting the optimism surrounding AI's potential. Companies like AMD, NVIDIA, and Intel, crucial in producing computing equipment, are poised to benefit significantly from the expansion of global data center capacity. Tech giants such as Google, Microsoft, and Amazon, with their expansive AI and data center infrastructure, are also set to gain from this growth.
Investor enthusiasm is evident in the surge of stocks of companies like Microsoft, Alphabet, Amazon, and Tesla. Semiconductor giants Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing have joined the trillion-dollar club, a testament to the relentless demand for AI technology. This $7 trillion investment marks the start of an infrastructure supercycle, indicating long-term upside for investors.
The AI infrastructure growth suggests that AI companies will continue to command premium valuations in the future. Semiconductor designers, manufacturers, cloud hyperscalers, and energy innovators are well-positioned to capture the secular tailwinds from the increasing demand for AI.
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