Global data centre deals hit record $61 billion in 2025 as insatiable demand for AI compute continues

High demand for the physical backbone of the Artificial Intelligence (AI) boom has propelled worldwide data center dealmaking to a new peak, reaching approximately $61 billion through November 2025. This record value, which surpasses the $60.81 billion record set in 2024, is fuelled by what analysts are calling a "global construction frenzy" to keep pace with the power-hungry requirements of generative AI.

The data, compiled by S&P Global Market Intelligence, reveals that over 100 transactions, including mergers, acquisitions, and asset sales, were executed as hyperscalers and financial sponsors race to acquire or build capacity.

AI is the prime driver

The surge in investment is directly linked to the need for massive computing infrastructure to train and run large language models (LLMs) like those from OpenAI, Google, and Anthropic. These AI workloads require significantly more power and specialised cooling than traditional cloud computing tasks.

Financial sponsors dominate

The biggest buyers in this space were not just the tech giants themselves, but increasingly private equity (PE) firms and infrastructure funds. They are attracted by the long-term, stable returns of data centre assets, which are viewed as resilient digital infrastructure.

The year was characterised by blockbuster transactions, most notably the $40 billion acquisition of Aligned Data Centres by a consortium that included BlackRock, Microsoft, and Nvidia. This single deal underscored the strategic importance of securing physical compute capacity.

The power constraint

The "frenzy" is primarily driven by the need for massive power capacity. Data centres are forecast to increase their grid use exponentially, leading to increased investment in power generation and transmission assets. Some tech firms are even exploring nuclear power as a solution for their energy-intensive AI demands.

Environmental and financial tensions

Despite the record investment, the sector faces growing concerns and opposition:

Environmental pushback

The enormous energy and water consumption of new data centre campuses have sparked fierce resistance from local communities and environmental organisations, leading to legal and social blowback in multiple US states.

Debt concerns

A significant portion of the financing is coming from private equity debt models, raising concerns among some investors about inflated valuations and the ability of operators to turn these capital-intensive, high-spending investments into consistent profits.

Nevertheless, analysts anticipate that the demand for AI applications will remain robust, suggesting the global data centre footprint will continue to expand at an accelerating pace through 2026 and beyond.