Prime Highlights:
- Global investment in data centers reached a record $61 billion in 2025, reflecting strong demand for digital infrastructure.
- Limited power supply and scarce assets are making existing facilities more valuable, boosting market interest.
Key Facts:
- The United States led the majority of data center deals, followed by the Asia-Pacific region, while Europe saw slower growth.
- Debt issuance in the sector nearly doubled to $182 billion in 2025, highlighting the high capital requirements of modern data centers.
Background:
Global investment in data centers hit a record $61 billion in 2025, showing strong demand for the infrastructure needed for digital services, despite worries about high costs and debt.
According to data from S&P Global Market Intelligence, deal value has already surpassed last year’s total of $60.8 billion, fueled by what analysts describe as a global construction boom. Hyperscale cloud providers are no longer relying solely on their own balance sheets to fund expansion.
Market nerves were briefly rattled this week after reports suggested Blue Owl Capital had withdrawn from backing a proposed $10 billion data center project in Michigan. Oracle shares fell sharply following the report, which the company said was inaccurate. Other major chip and cloud-related stocks, including Nvidia, Broadcom and AMD, also retreated, contributing to the Nasdaq Composite’s steepest one-day decline in nearly a month.
Despite the volatility, analysts remain largely confident that demand fundamentals remain intact. Iuri Struta, a technology, media and telecoms analyst at S&P Global Market Intelligence, said recent market reactions are unlikely to derail data center construction or mergers and acquisitions in the near term.
“The competitive landscape among leading AI model developers is evolving quickly, which can influence short-term sentiment,” Struta said.
More than 100 data center transactions were recorded in the first 11 months of 2025, exceeding the total number of deals completed in all of 2024. The United States led data center activity, followed by the Asia-Pacific region. Europe grew more slowly, but limited available assets could still lead to mergers and acquisitions in the future.
Experts say building modern data centers requires huge investment. Limited power supply in some areas is making existing facilities more valuable, which could drive up prices.
Looking ahead, S&P Global expects deal-making activity to remain robust in 2026. “With demand still rising and supply constraints in place, high valuations could climb further,” Struta said, adding that companies for whom data centers are not a core business may increasingly look to sell assets, adding momentum to the market.
