Moody’s sees $3T in data center spending by 2030

Group 1 - The report emphasizes that data centers are among the strongest drivers of U.S. nonresidential construction activity, with the construction boom still in its early stages according to Moody's [3] - Larger hyperscale data centers with capacities exceeding 300 megawatts are expected to come online this year, significantly increasing overall capacity [3] - Developers are accelerating construction schedules to meet the demands of hyperscalers, with tenants willing to share risks related to power and utility availability [4] Group 2 - High global demand for skilled labor and essential materials is impacting the construction of data centers, with producers cautiously increasing output to meet demand [5] - New data centers are projected to be more expensive than older facilities in similar markets, but demand is not expected to decrease despite higher costs [6] - In northern Virginia, lease prices for hyperscale data centers are projected to rise to $130 to $190 per kilowatt per month in 2025, up from $110 to $150 in 2024, reflecting similar trends in other markets [7] Group 3 - Global data center investment is anticipated to reach at least $3 trillion over the next five years, driven by rising construction costs and resource demand [8] - Hyperscalers are expected to drive double-digit growth in data center capacity through at least 2026, benefiting construction pipelines [8] - Evolving financing structures are supporting large-scale builds, with some tenants increasingly willing to share construction delivery risks to expedite completion [8]