Goldman lifts data center capacity outlook, flags utility stocks set to benefit

Investing.com -- Global data center capacity is set to expand far faster than previously expected over the rest of the decade, driven by surging AI infrastructure demand, but supply is still likely to remain tight as hyperscalers and emerging cloud providers race to secure computing power.

Goldman Sachs raised its forecast for worldwide data center capacity to 217 gigawatts (GW) by 2030, up from a prior estimate of 168 GW and more than double the 101 GW of capacity expected in 2025. The additional 116 GW of capacity would require roughly $6 trillion in capital spending, a level the bank believes can be supported by current hyperscaler investment plans.

The bank favors utilities including FirstEnergy, Xcel Energy, Duke Energy and Sempra, as well as independent power producers Talen Energy, Vistra and NRG Energy, which it expects to benefit from rising power prices and growing data center-related power contracts. Among data center operators, Goldman maintained a Buy rating on Digital Realty, saying persistent supply-demand tightness and AI infrastructure spending should support long-term growth.

The firm cited stronger-than-expected project activity tracked by 451 Research, with global capacity forecasts for 2026-2030 revised higher over recent quarters. Goldman estimates data center capacity will grow at a 17% compound annual rate between 2025 and 2030, with 60%-70% of new capacity additions located in the United States.

Goldman also struck a more constructive tone on the rapidly growing “neocloud” segment after several large leasing agreements and GPU-as-a-service deals were announced in recent months. The bank said lease rates have averaged about $166 per kilowatt per month on contracts lasting 15 to 20 years, highlighting persistent scarcity of large-scale computing capacity.

Despite the higher supply outlook, Goldman said market conditions remain exceptionally tight as vacancy rates continue to fall and pricing power strengthens. It noted some operators expect pricing per kilowatt to approach $250 later this year, compared with about $70 in 2021.

In the United States, Goldman forecasts data center capacity will reach about 125 GW by 2030, while annual demand is projected at roughly 108 GW. The expansion is expected to lift overall U.S. electricity demand growth to a 3.5% compound annual rate through 2030 and create significant opportunities for utilities and independent power producers exposed to major data center markets.

The bank also increased its outlook for data center power consumption, projecting global demand will rise 170% by 2030 compared with 2025 levels as AI adoption accelerates. It expects enterprise deployment of AI agents and other agentic workloads to sustain demand growth even as computing efficiency improves.

However, Goldman warned that power availability, permitting delays, labor shortages, equipment constraints and local opposition to new developments remain key risks that could slow future expansion.

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