Data centres are reshaping the global investment landscape

Data centres emerged as a major force shaping global investment in 2025, according to preliminary data published in a report on 20 January by UN Trade and Development (UNCTAD).

Announced foreign direct investment (FDI) in the sector exceeded an estimated $270 billion, driven by surging demand for AI infrastructure and digital networks.

Data centres accounted for more than one fifth of global greenfield project values, making them among the largest recipients of new, from-scratch foreign investment worldwide.

The surge helped push global FDI up 14% in 2025, to an estimated $1.6 trillion.

But the report cautions that the headline growth overstates the overall recovery. A significant share of the increase came from higher flows through major global financial centres. Excluding these, underlying FDI growth would have been closer to 5%.

Investment concentrates in capital-intensive sectors

The report points to a growing concentration of global investment in a small number of strategic, capital-intensive sectors, led by data centres.

Semiconductors also attracted more investment, boosted by supply-chain restructuring and strong demand for advanced chips used in AI infrastructure. The value of newly announced semiconductor projects rose 35% in 2025.

While these investments lift overall FDI figures, spillovers remain limited. Data-centre investment was concentrated in a handful of host countries, led by France, the United States and the Republic of Korea. Only a few emerging markets were among the top recipients.

Greenfield investment drives data centre growth

Unlike traditional telecommunications investment, much of the expansion in data-centre FDI came through new company-owned infrastructure, reflecting intensifying competition in AI technology.

Greenfield investment in the sector rose by about $125 billion in 2025, while international project finance increased by $30 billion.

Telecommunications outpace renewables

By contrast, investment activity weakened across much of the broader economy. Project numbers fell 25% in tariff-exposed, global value-chain-intensive sectors, particularly textiles, electronics and machinery.

Renewable energy investment declined, with greenfield project values falling 28% as investors reassessed risks and regulatory uncertainty. International infrastructure investment fell 10% in 2025, largely due to the pullback in renewables.

For the first time, telecommunications investment – driven largely by data centres – surpassed renewable energy in value.

Developed economies capture more FDI

FDI flows to developed economies jumped 43% to an estimated $728 billion in 2025, reflecting the concentration of strategic, technology-driven investment. The European Union recorded a 56% increase, supported in part by technology-related deals.

By contrast, flows to developing economies declined 2% to $877 billion. Three quarters of least developed countries recorded stagnant or falling inflows.

In October 2026, the World Investment Forum will convene in Doha under the theme “Investing in the future”. It will bring policymakers, investors and international institutions together to explore how investment can better support development, particularly where financing gaps are most acute.

Without action to revive productive investment, global FDI risks becoming increasingly concentrated in a few regions and sectors, limiting its contribution to development.