Global data center investment to hit $3t by 2030: Moody's

At least US$3 trillion is expected to be invested in data centers worldwide through 2030, according to a new Moody’s report.

Much of this funding will come from major US tech companies, including Microsoft, Amazon, Alphabet, Oracle, Meta, and CoreWeave, as demand for AI and cloud computing infrastructure rises.

These six firms are set to reach US$500 billion in data center investments in 2026.

Banks are projected to remain key financiers, with institutional investors increasingly joining loans to meet capital needs.

Moody’s estimates more US data centers will turn to asset-backed securities, commercial mortgage-backed securities, and private credit markets for refinancing, after a record US$15 billion was issued in the US ABS market in 2025.

The report notes that demand for new data center capacity remains strong but warns heavy borrowing could pose risks if technology adoption falls short.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Grid capacity constrains data center growth more than funding

Moody’s projects $3 trillion in data center capital expenditures (capex) through 2030, yet grid hookup waits near big cities often exceed 5 years because the grid needs transmission upgrades and distribution work 1.
In some areas grid operator connection queues (the waiting list to join the power grid) already exceed a country’s installed electricity capacity; the crunch is worst near large metros 1.
Average rack power density rose from 7 kW in 2021 to 16 kW, while NVIDIA-based graphics processing unit (GPU) servers can draw up to 132 kW per rack with 240 kW expected within a year 2.
Power needs mean financing alone will not unlock deployment, so grid build-out must come first, creating a mismatch between available capital and buildable capacity through 2030.

Power equipment makers see multi-year demand with tight supply

Data center operators hit supply chain delays while adding capacity for higher power density 3.
Transformers, switchgear (equipment that controls and protects electrical circuits) and generators have long procurement lead times (the period from order to delivery), which slows new capacity even when capital is ready.
Makers of high-power electrical distribution gear can benefit by expanding production now; so can engineering-procurement-construction (EPC) firms for utility-scale projects and industrial component distributors.
Moody’s expects six tech companies to spend $500 billion in 2026, creating demand that supports investment in manufacturing scale-up and supply chain verticalization (bringing more production steps in-house).