Data centre boom overtakes oil, solar investments as capex hits $770bn

Global investment in data centres surged to $770 billion in 2025, overtaking capital expenditure in upstream oil and gas and underscoring a structural shift in global energy and infrastructure markets, according to Rystad Energy.

The scale of spending also eclipsed solar photovoltaic (PV) investments, which had been the fastest-growing segment in energy supply over the past decade. Data centre investments had already surpassed solar in 2024, signalling a rapid reordering of capital allocation priorities.

Rystad Energy expected this momentum to continue in 2026, with data centre investments projected to match total spending across the entire oil and gas value chain, including upstream, midstream and downstream, as well as renewable power generation.

A significant share of the capital, around 40 percent, is directed towards IT infrastructure such as accelerator servers.

However, spending on supporting infrastructure, including cooling systems and power distribution units, is now approaching the scale of global solar PV capex.

Beyond direct investments, the expansion of data centres is catalysing hundreds of billions of dollars in additional spending across power generation, grid infrastructure and supply chains, effectively reshaping demand patterns within the energy sector.

The evolution of data centre architecture is also accelerating. Facilities exceeding 100 megawatts (MW) are emerging as the dominant model, requiring infrastructure-grade capital deployment but with significantly faster time-to-power expectations.

Investment flows are increasingly concentrated among hyperscalers and big tech firms such as Alphabet Inc., Amazon, Microsoft, and Meta Platforms, alongside artificial intelligence labs and global data centre operators. This mirrors the oil and gas sector, where capital deployment is dominated by major international oil companies and national oil companies.

Geographically, the US remains the largest market, accounting for 42 percent of global installed capacity in 2025, more than double that of China, the second-largest market. India ranks third, followed by a mix of countries across North America, Europe and Asia-Pacific.

However, future growth is expected to become more geographically diversified. Rising power demand, projected to exceed 10 percent of national consumption in several markets, is already creating constraints around electricity supply, land availability and infrastructure, pushing operators to explore new locations.

Emerging markets such as Finland, Portugal, and Thailand are projected to see strong capacity growth by 2030.

The ripple effects are being felt across the energy value chain. Demand for grid upgrades and equipment, including gas turbines, transformers and fuel cells, has boosted the performance of original equipment manufacturers.

Companies such as Siemens Energy, Bloom Energy, Mitsubishi Heavy Industries, and GE Vernova have recorded sharp share price gains, reflecting strong investor confidence in the sector’s growth trajectory.

Despite the boom, risks remain. Supply chain constraints, infrastructure bottlenecks and equipment shortages are expected to persist, potentially driving further cost inflation.

Analysts warned that while revenues across leading firms are rising rapidly, sustaining the current pace of investment will require the sector to approach the scale and stability of oil and gas revenue streams.

With artificial intelligence driving new demand for computing capacity, the data centre expansion cycle is expected to continue in the near term, reinforcing its position as a defining force in global energy and infrastructure investment.