Data Centre Investments Set to Soar in 2025 Amid Rising AI Demand.

Global investment in data centres is set to rise significantly in 2025 as cloud providers ramp up efforts to expand facilities to meet the growing demand for cloud services and AI-driven applications, according to a report by data and analytics firm GlobalData.

The report, titled “2025 Enterprise Predictions: Data Center,” highlights the expansion plans of colocation providers such as Equinix, Vantage, NTT, Digital Realty, and Vertiv. These companies are scaling their operations to accommodate the surge in AI services demanded by industries worldwide, despite challenges in securing prime data centre locations.

“Enterprises will increasingly rely on colocation providers to deploy their AI infrastructure instead of building their own facilities. This simplifies the complexities of scaling AI-driven workloads and transfers the operational liabilities of data centre maintenance,” said Beatriz Valle, Senior Analyst for Enterprise Technology and Services at GlobalData.

While cloud migration continues as part of digital transformation strategies, GlobalData notes that a significant shift of all workloads to the cloud remains unlikely. Certain critical workloads, particularly in industries like finance, healthcare, life sciences, and government, are not suited to cloud environments due to their complexity, sensitivity, and stringent data sovereignty regulations in specific geographies.

“Some industries face complexities that make cloud deployment impractical for specific workloads. Additionally, stricter regulatory requirements in some regions necessitate on-premises solutions,” Valle explained.

On-premises infrastructure continues to offer distinct advantages, including enhanced security, better integration with existing IT systems, lower latency for time-sensitive applications, and protection from unpredictable cloud fees. These benefits ensure on-premises solutions remain a viable option for enterprises even as cloud adoption grows.

As organisations balance between cloud and on-premises deployments, the demand for advanced data centre facilities is expected to drive significant investment, shaping the future of enterprise technology infrastructure.

HBL