AI data center investment to hit $1.6 trillion by 2030, Omdia says

Global data center investment will approach $1.6 trillion by 2030 as AI infrastructure enters an industrialization phase, Omdia forecasts.

The AI Factory market has crossed an irreversible threshold, with leading technology enterprises set to deploy over $600 billion in AI infrastructure capital expenditure in 2026 alone, according to a report from Omdia.

"This capital expenditure indicates that the AI Factory market has evolved into a new form of industrial organization characterized by ultra-high capital intensity, strong geopolitical attributes, and complex engineering barriers," the Omdia report said.

Cumulative global data center investment is forecast to approach $1.6 trillion by 2030, the research firm said. The spending surge reflects a structural shift as hyperscalers — including Alphabet's Google, Microsoft, Amazon, and Meta — race to secure computing capacity for AI workloads. Google alone committed $15 billion to a new data center campus in Montgomery County, Missouri, part of a broader trend that has pushed electricity demand forecasts sharply higher. The company said it has already contracted more than 1 gigawatt of new generation capacity in the state.

The scale of investment signals that AI infrastructure is no longer an experimental bet but a core industrial asset class. For investors, the $600 billion in 2026 capex represents both opportunity and risk: companies that secure capacity and customers early stand to generate stable cash flows for a decade or more, while those in transition face near-term earnings pressure.

Hyperscalers Lead the $600 Billion Charge

The spending is concentrated among a handful of technology giants. Alphabet, Microsoft, Amazon, and Meta are collectively driving the bulk of AI infrastructure buildouts, constructing data center campuses across North America and beyond. Google's Missouri facility, announced alongside a $20 million Energy Impact Fund for surrounding communities, will rely primarily on advanced air-cooling systems to minimize water use, the company said. The project is expected to create thousands of construction jobs and hundreds of permanent operational positions.

The demand for AI compute infrastructure is growing at a compound annual rate of 23.8%, per MarketsAndMarkets. That growth is rippling through the broader technology supply chain. Synopsys raised its annual forecast on demand for AI chip design software, while Marvell Technology forecast quarterly revenue above analyst estimates on AI chip demand — both signs that the investment wave is boosting semiconductor and design-tool companies alongside data center operators.

Contracted Capacity Separates Winners From Losers

The buildout creates clear divergence among infrastructure providers. Companies with long-term, contracted revenue from hyperscale customers have the strongest visibility. Cipher Digital, which signed its third hyperscale data center lease in the first quarter of 2026, now has 907 megawatts of operating and contracted capacity and roughly $11.4 billion in contracted revenues tied to leases lasting 10 to 15 years.

By contrast, miners transitioning from Bitcoin to AI workloads face near-term friction. IREN, one of the world's largest Bitcoin miners, saw total revenue fall 21.6% sequentially in its fiscal third quarter as it shifted power and infrastructure away from mining. The company recorded $140.4 million in impairment charges on mining hardware, though it secured a $3.4 billion, five-year AI cloud contract with Nvidia that should contribute around $700 million in annual recurring revenue once fully deployed.

For investors, the divergence is visible in valuation. Cipher Digital trades at 12.5 times book value, a premium to IREN's 7.3 times, reflecting the market's preference for revenue visibility over transition risk. Year to date, both stocks have returned roughly 50%, but the next 12 months will test whether IREN can execute its pivot without further earnings disruption. Nvidia shares, trading at about 35 times forward earnings, stand to benefit from both the hyperscale buildout and the expansion of AI cloud services, as its Blackwell GPUs power a growing share of the new capacity.

This article is for informational purposes only and does not constitute investment advice.