AI-Driven Data Center Demand to Surge 350% by 2030, 6.2 Trillion Dollar Opportunity for NVIDIA

McKinsey & Company has released a new analysis predicting that the global demand for AI-dedicated data center capacity will increase by 3.5 times by 2030. This surge is expected to create a market opportunity worth 6.2 trillion dollars for chip giant NVIDIA.

The report, titled "Expanding Larger, Faster, and Cheaper Data Centers with Smarter Design," forecasts that the power demand for AI workloads will skyrocket from 44 gigawatts (GW) in 2025 to 156 GW by the end of the decade. This exponential growth is primarily driven by the proliferation of AI, which is projected to account for 70% of the total data center capacity by 2030.

In March, the CEO of NVIDIA highlighted this explosive growth, stating that each gigawatt of data center capacity is valued at approximately 400 billion dollars, translating to a 500 billion dollar opportunity for NVIDIA. According to calculations by "The AI Investor," this implies a staggering 6.2 trillion dollar market opportunity for NVIDIA by 2030. Even if this estimate is halved, the opportunity remains substantial at 3.1 trillion dollars.

McKinsey's report also indicates that the total data center capacity demand, including non-AI workloads, will grow from 82 GW in 2025 to 219 GW in 2030. The capital expenditure on data center infrastructure, excluding IT hardware, is projected to exceed 1.7 trillion dollars by 2030. This expansion is largely attributed to the increasing adoption of AI, which is expected to dominate the data center landscape in the coming years.

The report underscores the significant role that AI will play in shaping the future of data centers. As AI workloads become more prevalent, the demand for specialized data center infrastructure will continue to rise, presenting a lucrative opportunity for companies like NVIDIA that are at the forefront of AI technology. The report's findings highlight the need for smarter design and more efficient use of resources to meet the growing demands of AI-driven data centers.