Global data center dealmaking reached a record $61 billion in 2025, fueled by an unprecedented push to expand infrastructure for energy intensive artificial intelligence workloads, according to S&P Global Market Intelligence.
The milestone, slightly higher than last year’s $60.8 billion, underscores a worldwide construction boom in the sector even amid investor concerns about inflated AI valuations.
The rapid expansion of data centers comes as companies increasingly rely on private equity and debt financing to fund costly facilities rather than self financing construction.
Analysts have noted that hyperscalers, including Google, Amazon, and Meta, are taking unconventional approaches to secure capital for building state of the art data centers designed to handle growing AI demands.
Despite growing skepticism among investors over AI bubbles and stock market volatility, the sector continues to attract significant financial activity.
Shares of cloud companies, including Oracle and Broadcom, experienced pullbacks after reports of financing withdrawals, but experts suggest the overall market trend remains strong.
Iuri Struta, TMT analyst at S&P Global Market Intelligence, said the temporary market concerns around AI and Oracle’s reported deal issues are unlikely to derail the broader data center buildout.
“The competitive dynamic among frontier AI model providers, like OpenAI, Alphabet and Anthropic, is changing quickly and can influence investor sentiment.
But overall, demand for AI applications is expected to continue growing strongly in 2026,” Struta said. Wim Steenbakkers, global head of data centers and technology at ING, emphasized the dual nature of AI development.
“There are two sides to AI, one that accelerates sectors like medicine and another that raises public safety concerns,” he said. “Uncertainty around monetization and high investment levels will be clarified over time as applications mature.”
Data from S&P Global shows that more than 100 data center transactions were completed in the first eleven months of 2025, surpassing the total number of deals in 2024.
The majority of these transactions occurred in the United States, followed by activity in the Asia Pacific region. Europe’s expansion has lagged, although experts note potential for an M&A rush amid scarcity of assets.
Debt issuance nearly doubled to $182 billion in 2025, compared with $92 billion last year. Meta led the way, raising $62 billion in debt since 2022, almost half of which was issued in 2025.
Google and Amazon raised $29 billion and $15 billion, respectively, signaling a trend in which hyperscalers partner with AI labs to finance construction in unusual arrangements.
Industry participants in Michigan, where a $10 billion data center was reportedly affected by Blue Owl Capital withdrawing from the deal, said construction momentum remains strong.
“We are seeing no slowdown in hiring and permitting,” said Jonathan Lee, a local project manager. “Developers are still moving forward, and the demand for AI ready facilities is only growing.”
In Singapore, an emerging hub for AI infrastructure in the Asia Pacific, data center developers noted the increasing interest from Gulf investors.
“We are witnessing a wave of international investment targeting high performance data centers,” said Priya Malhotra, director at a regional data center consultancy. “Middle East investment is becoming a significant driver of the market.”
Experts expect 2026 to continue the growth trajectory, with more robust M&A activity and potentially higher valuations for existing and new data center assets.
Struta noted that energy supply constraints could temporarily slow new construction, inadvertently boosting the value of operational centers.
“Companies that do not view data centers as core business may consider asset sales, further shaping market dynamics,” he said.
The global data center market in 2025 has reached record highs, driven by AI demand, innovative financing, and a construction surge.
While investor concerns over valuations and stock volatility persist, experts agree that long term demand for AI-capable infrastructure will continue to support the sector’s expansion.
