According to the baseline projections from PwC’s Global Data Centre Outlook, global investments in artificial intelligence infrastructure will reach a record $31.6 trillion by 2050.
Annual capital investments in data centers are expected to grow from approximately $800 billion per year in 2026 to $1.8 trillion per year by 2050.
The US, which plays a central role in the advanced chip ecosystem, is expected to attract nearly half (48 percent) of these investments, amounting to $15.1 trillion. The Asia-Pacific region is projected to achieve cumulative capital investments of $8.2 trillion, led by China and India, while sovereign artificial intelligence strategies accelerate investments in Europe and the Middle East.
Unlike traditional infrastructure booms, which slow down after initial construction, investments in artificial intelligence infrastructure are expected to accelerate as chips and other ICT equipment need to be upgraded every few years. The share of ICT equipment in investments will increase from the current 70 percent to 93 percent by 2050.
Access to energy is crucial for the expansion of data centers
The report outlines five factors that will guide global investment flows. The most important is electricity, as many markets find it challenging to secure affordable, reliable, and low-carbon electricity at the required scale. Connectivity, security, policy predictability, community acceptance, and access to graphics processing units (GPUs) will also influence investment destinations.
– Artificial intelligence infrastructure is becoming one of the key challenges for capital allocation for the next generation. It encompasses technology, energy, real estate, supply chains, regulation, and financing. This changes the way infrastructure investors need to think about capital needs, risks, and returns – stated Clara Cutajar, Global Leader of Infrastructure Services at PwC Australia.
– The global wave of investment in AI-related infrastructure creates significant opportunities for countries that can provide the key prerequisites for developing data centers. The findings of this report indicate that the availability of reliable sources of (sustainable) electricity is becoming one of the most important competitiveness factors in attracting investments. For Croatia and the wider region, this means that investments in energy and digital infrastructure, as well as a predictable regulatory framework, are important prerequisites for strengthening their position in the European digital ecosystem. As organizations rapidly integrate artificial intelligence into their operations, we expect that issues of capacity, security, and digital sovereignty will become increasingly important for both business leaders and policymakers – said Damir Kecko, partner in the Transaction Services Department at PwC Croatia.
