Prime Highlights:

• Global investment in data centres is soaring, with spending expected to reach $3 trillion by 2028, driving major growth across the tech industry.
• The expansion is also boosting local economies, such as Microsoft’s new data centre in Newport, which is creating jobs and supporting regional development.

Key Facts:

• Nvidiahas reached a market value of $5 trillion, while Microsoft and Apple have each surpassed $4 trillion.
• Amazon, Meta, Google, and Microsofttogether plan to invest over $750 billion in data centre projects within the next two years.

Background:

The global artificial intelligence (AI) investment wave is accelerating, with data centre construction projected to reach a staggering $3 trillion by 2028, according to analysts. These massive facilities, the backbone of AI platforms such as OpenAI’s ChatGPT, Google’s Veo 3, and Microsoft Copilot, are driving one of the largest infrastructure expansions in modern technology.

Top tech companies are driving this growth. Nvidia is now worth $5 trillion, while Microsoft and Apple have each passed $4 trillion. OpenAI is valued at about $500 billion and may go public next year at around $1 trillion. Alphabet, Google’s parent company, also reported record quarterly revenues of $100 billion, fueled by soaring demand for AI and cloud services.

The boom is not limited to Silicon Valley. In Newport, Wales, Microsoft is building a new data centre on the site of an old factory, helping to boost the local economy. City officials see it as a turning point, a chance to move from the industrial past toward a digital future, creating long-term employment and infrastructure growth.

Across the tech industry, Amazon, Meta, Google, and Microsoft plan to invest more than $750 billion in data centre projects over the next two years. Some experts say heavy borrowing could be risky if demand drops, but investors stay confident as revenues are expected to grow quickly by 2028.

Although a few experts caution against building too many facilities, most believe the outlook is positive. Data centres are now seen as the backbone of global technology, supporting cloud services and digital growth. For places like Newport, this expansion represents not only progress but also new opportunities for jobs and development.