Equities

Data centers: The cornerstone of the digital age

November 11, 2025 - 2 min

Hi everyone, I’m Shawn Kumar and I’m an Equity Analyst on the Sustainable Equities Team.

Did you know that the demand for data center capacity is projected to more than triple by 2030?

To meet this increasing demand, a significant upgrade of physical digital infrastructure is crucial for enhancing both efficiency and scalability. However, the path to expansion has its challenges including limited power supply availability, resource bottlenecks, and high capital expenditures - which can all substantially delay progress.

Despite these challenges, many investment opportunities are emerging across the data center landscape.

In fact, companies throughout the value chain will need to invest approximately $5.2 trillion into data centers by 2030 to satisfy the global demand for artificial intelligence alone.

Companies that invest in innovation, drive efficiencies, and have resilient supply chains will position themselves as the leaders in this rapidly evolving market.

Success will not only depend on meeting current needs but also on planning for the future of generative AI and the next wave of computing. This approach means securing energy resources and investing in the right infrastructure.

For an in-depth exploration of these trends and insights, be sure to check out our latest article, "Trending Forward."

Mirova Equity Analysts Shawn Kumar and Joe Toscano, CFA^®, believe increased demand and infrastructure challenges highlight the need for substantial investment and modernization of aging electricity grid networks. Read more about the challenges and opportunities they see in this space in the years ahead.

Key takeaways

Over the past decade, data centers have experienced rapid growth, and there are no signs of slowing down.
The increasing demand for generative artificial intelligence (AI), as well as the next wave of computing, is set to accelerate this growth.
To keep pace with the surging demand for data storage and processing, massive investment and innovation are required by companies who build, design, and operate data centers.
This will require investment in data processing and storage as well as the critical infrastructure components that support the technology, such as electricity systems, cooling technologies, and advanced hardware.
Hurdles include high capital expenditures, access to power supplies and significant environmental risks, including increased carbon emissions, threats to biodiversity, and strain on water resources.
Companies that prioritize efficient scaling, invest in innovative technologies, and establish resilient supply chains will emerge as leaders in this rapidly evolving market.

Data centers: The cornerstone of the digital age

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