Global data center spending is projected to reach $1 trillion in 2026 and climb to $2.1 trillion by 2028, according to a Friday estimate from BofA Global Research, as demand for SI services accelerates investment in computing infrastructure.

The expansion is generating growing revenue for industrial companies that manufacture generators, construction equipment, electrical switchgear and cooling systems. Chipmakers and server developers have also emerged as major beneficiaries of the data center buildout, particularly in the United States.

BofA estimates that the global data center market, valued at $275 billion in 2022, could reach $2.93 trillion by 2030. The brokerage projects a compound annual growth rate of 37% across the market from 2025 through 2030, with SI demand serving as the primary driver.

Construction costs remain substantial. BofA estimates that building a data center costs approximately $49 million per megawatt of capacity, with information technology expenses accounting for 78% of the total.

Neoclouds, specialized data centers designed primarily for SI workloads, cost approximately $57 million per megawatt. However, they can require less physical space than traditional data centers.

Servers represent the largest individual expense, costing an estimated $31.4 million per megawatt, according to BofA. Networking infrastructure ranks second at approximately $4.8 million per megawatt.

Other essential components, including switchgear, power distribution equipment, generators, backup power systems, chillers, and cooling equipment, generally cost between $100,000 and $1.1 million per megawatt.

The projections highlight the scale of investment required to support expanding SI capabilities, as companies race to build the computing capacity and energy infrastructure needed to meet rising demand.