The global data center market is experiencing rapid growth, projected to expand from $242.72 billion in 2024 to an impressive $585 billion by 2032, according to a recent report by Fortune Business Insights. This expansion represents a compound annual growth rate (CAGR) of 11.7%, with North America leading the charge—commanding nearly 39% of the market share in 2024.
Generative AI: A Key Growth Catalyst
A significant driver of this growth is the rise of generative AI. With deep learning models demanding immense computational resources, the sector is undergoing a transformation. Organizations are increasingly adopting hybrid and multi-cloud strategies, combining public, private, and on-premises infrastructure to enhance flexibility and efficiency. Simultaneously, modular data centers are gaining popularity for their scalability, reduced deployment time, and cost-effectiveness compared to traditional facilities.
Scaling Infrastructure to Meet AI’s Rising Power Needs
To support the surging AI workloads, data center investments are ramping up across the board. Companies are prioritizing scalable and sustainable infrastructure, with an emphasis on securing reliable energy sources. One notable example is Related Companies, which has launched a new division—Related Digital—focused on AI-driven data center development.
In a recent interview on CNBC’s Squawk on the Street, CEO Jeff Blau discussed the company’s strategic direction, highlighting the formation of a specialized team to oversee these initiatives. Related Digital has already secured over five gigawatts of power capacity across the United States and committed $500 million in initial capital. The firm plans to raise an additional $8 billion to accelerate development.
Blau emphasized the importance of securing long-term tenant commitments—often 15-year leases—before breaking ground on new facilities. With energy availability becoming a critical bottleneck, he underscored that early investments in grid capacity give Related a strong competitive edge in the evolving AI infrastructure landscape. Demand from hyperscalers like Microsoft and Alphabet, both significantly boosting capital expenditures, continues to fuel this trend.
Next-Gen Chip Design: Ansys and GlobalFoundries Collaborate
Meanwhile, upstream innovation is advancing as well. On March 27, Ansys, Inc. (NASDAQ: ANSS), a leader in engineering simulation software, announced a new partnership with GlobalFoundries to enhance photonic chip design capabilities. The agreement certifies four Ansys photonic solvers for use with the GF Fotonix platform, enabling precise modeling of both passive and active photonic components.
This collaboration aims to deliver high-fidelity optical, electrical, and thermal simulations, critical for developing next-generation chips used in AI, autonomous vehicles, data centers, and IoT applications. By enhancing the accuracy of photonic simulations, the partnership helps engineers overcome complex design challenges while improving chip performance and efficiency.
