Summary:
1. Global capital is increasingly being directed towards data centers due to the rising demand for AI and digital services.
2. Data center projects accounted for nearly one-fifth of global greenfield foreign direct investment in 2025.
3. The concentration of investment in data centers and other capital-intensive sectors raises concerns about uneven distribution and limited spillover effects.
Rewritten Article:
In the fast-paced world of technology, global capital is flowing towards data centers at an unprecedented rate. The latest data from the UN Trade and Development reveals that data center projects have become a major recipient of foreign direct investment, with nearly one-fifth of all global greenfield investments in 2025 being allocated to this sector. This surge in investment, expected to exceed $270 billion for the year, highlights the growing influence of data centers on the global economy.
While the headline figures point to a robust recovery in foreign direct investment, the report cautions that the growth may not be as evenly distributed as it seems. A significant portion of the increase in investment flows can be attributed to financial activities in major international hubs, masking underlying weaknesses in productive investment. This uneven distribution raises concerns about the ability of digital infrastructure investments to support broader development goals.
The data also sheds light on the growing concentration of capital in capital-intensive sectors like data centers and semiconductor manufacturing. The strategic importance of digital infrastructure is underscored by the 35% increase in the value of newly announced semiconductor projects in 2025. However, despite the scale of data center investments, there are limited spillover effects, with most activities concentrated in advanced economies like the United States, France, and South Korea.
Unlike traditional telecommunications spending, recent growth in data center investment has primarily been in greenfield projects rather than upgrades to existing networks. This reflects the intensifying competition around AI capabilities, with companies opting to build proprietary infrastructure to support their digital operations. However, this trend contrasts sharply with declines in investment in tariff-sensitive industries like textiles and electronics, as well as weakening renewable energy investment.
As the total value of telecommunications investment surpasses that of renewable energy for the first time, concerns arise about the concentration of global FDI in a few regions and industries. Developing economies are seeing stagnating or declining inflows, raising questions about the inclusivity of global capital flows. These issues are expected to be a key focus at the upcoming World Investment Forum in Doha, where stakeholders will discuss how investment can better support long-term development goals.
In conclusion, the rapid growth in data center investments highlights the shifting priorities in global capital flows. While data centers play a crucial role in supporting AI and digital services, the concentration of investment in a few sectors and regions poses challenges to achieving inclusive growth. Policymakers, investors, and international institutions will need to address these issues to ensure that global capital flows contribute to sustainable development.
