According to the analytical news outlet IRASIN, Bank of America Global Research forecasts that global spending on data centers will reach $1 trillion in 2026 and more than double to $2.1 trillion by 2028, fueled by sustained demand growth and the expansion of artificial intelligence services. Beyond expanding compute infrastructure, this trajectory is generating growing revenue opportunities for industrial firms engaged in producing power generators, construction equipment, electrical switchgear, and cooling systems.

According to Bank of America's estimates, the data center market—valued at approximately $275 billion in 2022—could reach $2.93 trillion by 2030. The firm identifies the expansion of AI services and the rising need for processing infrastructure as the primary drivers behind this market growth.

Under these projections, the data center market could experience a compound annual growth rate (CAGR) of 37% between 2025 and 2030—a surge driven by increased investment in data center construction, compute capacity expansion, and the procurement of equipment required to process growing data volumes. The proliferation of AI applications has heightened the need for higher compute power and advanced infrastructure. Consequently, constructing new data centers and expanding existing facility capacity have become critical investment areas within the digital economy.

Industrial Companies in the Data Center Supply Chain

Rising data center investment has turned into a growing revenue stream for industrial enterprises, particularly those manufacturing power generators, construction equipment, switchgear, and cooling systems. These items are vital for building and operating data centers; beyond high electricity consumption, such complexes require power distribution systems, backup power generation, and advanced cooling technologies.

Meanwhile, chipmakers and server developers have been among the largest beneficiaries of AI-driven data center infrastructure expansion—particularly in the US market, where investment in this domain is progressing at a remarkable pace.

How Much Does It Cost to Build Each Megawatt of Data Center Capacity?

Bank of America estimates indicate that data center construction costs average approximately $49 million per megawatt of capacity. IT-related expenses account for roughly 78% of total spending on these facilities.

Specialized AI data centers—known as "Neocloud"—incur higher construction costs due to their focused provision of dedicated AI compute infrastructure and cloud services. The firm's estimates show that building these specialized facilities costs approximately $57 million per megawatt of capacity. Despite higher costs, Neoclouds require less physical footprint compared to traditional data centers—an advantage that can prove significant in designing and operating specialized compute infrastructure.

According to Bank of America estimates, servers represent the most capital-intensive component of data center construction, costing approximately $31.4 million per megawatt of capacity. Network equipment ranks as the second most expensive component, with an approximate cost of $4.8 million per megawatt. This cost distribution highlights that the vast majority of data center investment is directed toward IT and processing equipment—a reality directly linked to rising demand for AI computations and the development of more powerful servers.

Electrification and Cooling: Vital Imperatives for Data Center Expansion

Other essential equipment and systems for data centers—including switchgear, power distribution units, generators, emergency power systems, chillers, and cooling apparatus—each carry costs in the approximate range of $100,000 to $1.1 million per megawatt of capacity.

This equipment plays a vital role in ensuring stable power supply, managing electrical loads, and controlling server temperatures. As compute density rises—especially in facilities dedicated to AI—power supply and heat dissipation have emerged as two pivotal factors in designing and operating these complexes.

Overall, Bank of America's assessments demonstrate that AI development is impacting not only the chip and server markets, but also a broad spectrum of industries linked to power generation, electrical equipment, building infrastructure, and cooling systems. Should these market growth projections materialize, data centers will serve as one of the primary focal points for industrial and technology infrastructure investment in the coming years.