AI data center spending could hit $2.9 trillion, but $1.5 trillion needs funding

Morgan Stanley forecasts $2.9 trillion in global data center spending driven by AI from 2025 to 2028—but projects that the biggest technology companies will cover only about half through their own cash flows. That leaves an estimated $1.5 trillion financing gap , with private credit expected to supply much of the external funding. Key takeaways Morgan Stanley expects hardware to absorb $1.6 trillion of the projected spending. Private credit could supply roughly $800 billion through asset-specific loans. The US data center power deficit is forecast to reach 32 to 33 gigawatts by 2028. AI-driven data center spending splits between hardware and construction Morgan Stanley allocates about $1.6 trillion to IT hardware , including chips and servers, and $1.3 trillion to physical infrastructure and construction .

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