AI Data Center Market Achieves Record Growth Amidst Supply Challenges

The global AI data center market was valued at USD 5.76 billion in 2025 and is projected to reach approximately USD 25.53 billion by 2035, indicating a compound annual growth rate (CAGR) of 40.1% from 2026 to 2035. This surge is driven by the widespread adoption of artificial intelligence across various industries.

Global demand for data center capacity is escalating, with estimates suggesting an annual growth rate of 19-22% between 2023 and 2030, potentially reaching 171-219 gigawatts (GW). A more aggressive scenario forecasts a 27% annual increase, leading to a demand of 298 GW by 2030, a substantial rise from the current 60 GW.

Despite the soaring demand, the supply side is struggling to keep up. Analysis indicates that the industry must build at least twice the data center capacity constructed since 2000, but in less than a quarter of the time. The United States alone faces a potential deficit of over 15 GW by 2030, highlighting an urgent need for accelerated development and innovative solutions.

The increasing use of AI, particularly generative AI, is fueling the demand for specialized AI-ready data centers. Research suggests that capacity for these facilities will grow at an average annual rate of 33% between 2023 and 2030. By the end of the decade, AI data centers are expected to constitute roughly 70% of the total data center capacity, underscoring their strategic importance in the evolving technological landscape.