The global demand for artificial intelligence is fueling a construction boom unlike any other, with analysts projecting a $3 trillion spend on datacenters by 2028. This rapid expansion is adding to the 11,000 datacenters already in operation globally—a number that has grown 500% in just 20 years.
The scale of this new wave is breathtaking. According to property group JLL, work on an estimated 10 gigawatts (GW) of new datacenter capacity is expected to begin this year alone. To put that in perspective, 10GW represents roughly a third of the entire power demand of the United Kingdom. This is in addition to another 7GW set to be completed this year.
This expansion is adding to a current global capacity of 59GW, with Goldman Sachs expecting that number to double by the end of 2030. This furious pace of construction comes with its own massive secondary costs. Goldman estimates that $720bn in new grid spending will be required just to meet the energy demands of this new capacity.
Massive, AI-dedicated projects are popping up worldwide. The $500bn Stargate venture from OpenAI, Oracle, and SoftBank is planning a network across the US and a new site in North Tyneside, UK. Meanwhile, Elon Musk’s xAI is building “colossus” in Memphis, and Microsoft is backing a dedicated AI site in Essex.
While some warn of a bubble, pointing out that many announced projects are “speculative,” the tech giants are pushing forward. They argue this infrastructure is essential not just for AI but for all cloud services, from email to file storage. In communities like Newport, Wales, the construction of a new Microsoft facility is being hailed as a new industrial revolution, providing generational employment.