Data centres are transforming the worldwide foreign direct investment (FDI) scene, emerging as a leading driver of capital flows amid the AI boom.
According to UN Trade and Development (UNCTAD)’s latest Global Investment Trends Monitor (No. 50), released in January 2026, the data centre sector attracted over $270 billion in announced FDI during 2025. This figure represents more than 20% of total global greenfield project values, positioning data centres as one of the top destinations for new-build cross-border investments.
Fueled by explosive demand for artificial intelligence computing power, cloud services, and advanced digital connectivity, this influx played a pivotal role in lifting overall global FDI by 14% to roughly $1.6 trillion in 2025—the first notable rebound after recent sluggish years.
However, UNCTAD emphasizes that the headline rise masks fragility. Much of the uptick stemmed from increased routing through international financial hubs, while core underlying activity grew only around 5% when these distortions are stripped out. Broader economic sectors faced headwinds, with sharp declines in areas sensitive to tariffs and supply chains.
Key Drivers: AI and Capital-Intensive Technologies
The report highlights a shift toward high-value, asset-heavy industries. Data centres led the pack through greenfield expansions (up ~$125 billion) and international project finance (up $30 billion), as companies raced to own and control AI-critical infrastructure rather than relying on traditional telecom models.
Semiconductor projects also surged 35%, supported by geopolitical supply-chain shifts and the need for cutting-edge chips powering AI systems.
In contrast:
- Renewable energy greenfield values dropped 28% amid policy uncertainty and risk reevaluation.
- Telecommunications as a whole overtook renewables for the first time, largely thanks to data centre momentum.
- Many traditional manufacturing sectors (textiles, electronics, machinery) saw project numbers plummet 25%.
Geographic Concentration Raises Concerns
Data centre capital remains highly concentrated in select markets. Top recipients in 2025 (based on first three quarters’ data) included:
- France: $69 billion
- United States: $29 billion
- Republic of Korea: $21 billion
- Brazil: $10 billion
- Spain: $9 billion
- Thailand: $9 billion
- India: $7 billion
Developed economies absorbed a disproportionate share, with FDI inflows jumping 43% to $728 billion. The European Union saw a 56% rise, bolstered by tech-focused transactions. Developing economies, meanwhile, experienced a slight 2% dip to $877 billion, and most least developed countries saw flat or declining trends.
This polarization limits technology diffusion and economic spillovers, as investments cluster in advanced regions with robust power grids, regulatory support, and talent pools.
Looking Ahead: Toward Broader Development Impact
The upcoming World Investment Forum in Doha (October 2026), themed “Investing in the future,” will gather global leaders to address these imbalances. Discussions will focus on channeling capital toward underserved areas, bridging financing gaps, and ensuring strategic sectors like digital infrastructure contribute more equitably to sustainable growth.
Without deliberate policies to diversify flows and boost productive investments in emerging markets, FDI may increasingly favor narrow geographic and sectoral pockets—reducing its potential to drive inclusive development worldwide.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.