Investment in data centers now surpasses spending on discovering new oil reserves globally

In 2025, global investment in data centers is estimated to reach approximately **$580 billion**, surpassing the total global spending on discovering and developing new oil supplies, which is projected at around **$540 billion**, according to the International Energy Agency (IEA). This milestone underscores a significant shift in the global economy towards digital infrastructure and technology-driven growth[1][2].

The surge in data center investment is largely driven by the...

The surge in data center investment is largely driven by the rapid expansion of artificial intelligence (AI) and cloud computing technologies. Companies worldwide are heavily investing in new data center capacity to support increasingly large and complex AI models and to meet the growing demand for digital services. This transformation reflects the changing nature of modern economies, which are becoming more digital and less dependent on traditional fossil fuel industries[1][2].

Data centers consume substantial amounts of electricity, and...

Data centers consume substantial amounts of electricity, and their energy demand is expected to grow dramatically over the next decade. Electricity consumption from AI data centers alone is forecasted to increase fivefold by 2030, doubling the current total energy use of all data centers. The majority of this growth is expected in the United States, with significant contributions from Europe and China. Many new large-scale data centers are clustered near major urban areas, often facing infrastructure challenges such as grid congestion and long connection queues, with some regions experiencing delays of up to a decade before grid connection can be secured[2].

Despite the growth in energy consumption, the IEA projects t...

Despite the growth in energy consumption, the IEA projects that renewables will supply the majority of new power for data centers by 2035. Solar energy, in particular, has become a favored power source due to significant cost reductions. Over the next decade, renewable energy is expected to provide around 400 terawatt-hours of electricity to data centers, compared to about 220 terawatt-hours from natural gas. Emerging technologies such as small modular nuclear reactors may also contribute an estimated 190 terawatt-hours[2][5].

Meanwhile, investment in the oil sector is seeing a decline,...

Meanwhile, investment in the oil sector is seeing a decline, particularly in upstream exploration and development activities. Lower spending in price-sensitive areas like the U.S. shale patch, coupled with a global shift towards cleaner energy sources, is driving down capital expenditures in new oil supply projects. Refinery investments are also expected to fall to their lowest levels in a decade, reflecting a broader trend of reduced investment in traditional fossil fuel infrastructure[7][9].

Interestingly, oil companies themselves are beginning to piv...

Interestingly, oil companies themselves are beginning to pivot, increasingly providing off-grid power solutions for data center operations, especially in support of AI growth. This shift highlights how oil and gas firms are adapting to the rising demand for digital infrastructure while facing the challenges of a transitioning energy landscape[3][12][14].

In summary, 2025 marks a pivotal year where **investment in...

In summary, 2025 marks a pivotal year where **investment in data centers overtakes spending on discovering new oil reserves globally**, signaling a profound economic and technological transformation. The trend reflects the growing centrality of digital infrastructure in the global economy and the ongoing energy transition towards renewable power sources for data-intensive industries[1][2][7].