Global investment in AI infrastructure to hit US$31.6 trillion through 2050: PwC

• PwC projects US$31.6 trillion in capital expenditure through 2050 to build the compute capacity needed for AI. 
• Annual data centre capital expenditure is forecast to rise from roughly US$800 billion per year in 2026 to $1.8 trillion per year in 2050.
• Recurring chip upgrades—not construction—will drive the majority of long-term capital investment.
• Power will be the decisive factor shaping where AI infrastructure investment flows.
• Disrupted trade flows for chips could cut global investment by nearly 20%, while a growing sovereignty push would redistribute rather than reduce global investment.

Jakarta — Global investment in AI infrastructure will hit a record US$31.6 trillion through to 2050, according to baseline projections in PwC's Global Data Centre Outlook. On an annual basis, data centre capital expenditure is forecast to rise from roughly US$800 billion per year in 2026 to $1.8 trillion per year in 2050.

The US, which is central to the advanced-chip ecosystem, is expected to capture almost half (48%) of this investment, at $15.1 trillion. Asia Pacific is expected to account for $US8.2 trillion cumulative capex, led by China and India, while sovereign AI strategies are accelerating investment in Europe and the Middle East.

Unlike traditional infrastructure booms, which taper off after the initial build out, AI infrastructure investment is expected to accelerate as chips and other information and communications technology (ICT) equipment require upgrades every few years. ICT equipment will account for an increasing share of investment—from 70% today to 93% by 2050.

Energy access core to the data centre rollout

The Outlook identifies five factors that will direct where investment flows globally. Chief of these is power, as affordable, reliable, and low-carbon electricity at scale is the hardest requirement for many markets to deliver. Connectivity, security, policy certainty, and community consent, along with Graphics Processing Unit (GPU) access, will also influence where investment lands.

Clara Cutajar, PwC Australia Global Infrastructure Leader, said, “AI infrastructure is becoming one of the defining capital allocation challenges of the next generation. It cuts across technology, energy, real estate, supply chains, regulation, and financing. This changes how infrastructure investors need to think about capital requirements, risk and returns.”

Export controls and digital sovereignty shape the capex map

The analysis also tested two scenarios to assess how changes in trade policy, export controls, and digital sovereignty could affect global AI infrastructure investment.

In the first scenario, tighter export controls disrupt global chip supply chains. Annual investment falls to around half the central forecast by 2030 before gradually recovering as supply chains adapt. Even with that recovery, cumulative global investment through 2050 is projected at around US$25.5 trillion—roughly US$6 trillion less than the central forecast of US$31.6 trillion.

The second scenario paints a different picture. Rather than significantly reducing overall investment, greater emphasis on digital sovereignty and trusted domestic infrastructure changes where capital is invested. Total global spending reduces only slightly, but investment shifts toward countries with strong domestic demand and relatively underdeveloped data centre capacity as governments and regulated industries prioritise local infrastructure.

As a result, Asia Pacific is expected to be the largest beneficiary in absolute terms. The region’s cumulative capital expenditure is projected to rise 7% above the central scenario by 2050. Indonesia is among the markets expected to record a material uplift, alongside India, Vietnam, the Philippines, and Thailand, reflecting large domestic demand bases that have so far been served disproportionately by regional hub.

Agung Wiryawan, PwC Indonesia Infrastructure Leader, said, “Indonesia’s growing digital demand creates a significant opportunity for data centre investment, but capturing it will require more than building capacity. Reliable power, connectivity, land availability, and clear policy settings must develop in parallel, supported by stronger project execution and greater private-sector participation. A coordinated approachacross these areas will be essential to build resilient digital infrastructure and support Indonesia’s long term economic growth.”

Beyond infrastructure considerations, rising digital demand is also strengthening the investment case for local data centre development in Indonesia. Growth in cloud services, AI adoption and data sovereignty requirements is expected to drive the need for additional capacity across the country. Abdullah Azis, PwC Indonesia Technology, Media & Telecommunications Leader, said, “Indonesia is entering a new phase of digital transformation where AI, cloud adoption, and data-intensive services are becoming increasingly central to business growth and economic development. With one of the largest digital economies in Southeast Asia, Indonesia has a unique opportunity to attract greater data centre investment, supported by rising local demand, expanding digital ecosystems, and growing data sovereignty considerations. The focus now is not only on adding capacity but on building a resilient, secure, and sustainable digital infrastructure foundation that can support innovation, enhance
competitiveness, and create long-term value for the economy."