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Multibillion-dollar data center projects to watch

Jan 28, 2025 - constructiondive.com
The data center sector has rapidly evolved into a significant driver of nonresidential construction, with substantial growth expected to continue. Data centers have contributed to a 19% increase in planning activity since December 2023, and J.P. Morgan projects they could add 10 to 20 basis points to U.S. economic growth in 2025 and 2026. Major tech companies are heavily investing in data centers to support growing artificial intelligence demands. Notably, a joint venture called Stargate, involving OpenAI, Softbank, and Oracle, plans a $100 billion investment in AI infrastructure, potentially scaling to $500 billion by 2028.

Several tech giants have announced significant data center projects. Amazon plans to invest $150 billion over 15 years, with new projects in Ohio. Google is expanding with projects in Arizona, Indiana, and Nebraska. Meta aims to construct a massive data center in 2025, with ongoing projects in multiple states. Microsoft plans to invest over $80 billion in cloud data centers, with major projects in Wisconsin and Ohio. Oracle is expanding its data center footprint, including a large AI-focused facility in Salt Lake City. These investments highlight the sector's critical role in supporting AI and cloud computing growth.

Key takeaways:

  • Data centers are significantly boosting nonresidential construction planning, contributing to a 19% increase in planning activity since December 2023.
  • Major tech companies like Amazon, Google, Meta, Microsoft, and Oracle are heavily investing in data center infrastructure to meet growing AI and cloud computing demands.
  • Amazon plans to invest $150 billion over 15 years in data centers, while Google is expanding its digital infrastructure with projects in Arizona, Indiana, and Nebraska.
  • Oracle is working on a data center powered by nuclear reactors and plans to spend $10 billion on data center expansion in 2025.
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