Data centre boom: US, UK, China, EU, Australia, Germany, Canada, Japan, India, Malaysia, Philippines, Pakistan, and more power the surge

They say data is the 'new oil'.

And just like oil sparked global booms, data is fuelling a new kind of digital "gold rush", according to The Economist.

The US, the birthplace of internet and apps, currently dominates this game (with 5,383 data centres), ahead of all other nations combined.

In recent years, however, the global data centre industry has seen explosive, unprecedented growth.

It's spreading everywhere

So while Germany has 522 data centres and the UK has 512, China operates an estimated 450 data centres.

India is also emerging rapidly, with more than 140 data centres, with significant growth projected. The Philippines currently has 25 data centers listed, while Pakistan has 22, as per Data Center Map, an industry monitor.

The pace of expansion underscores the critical role data centres play in supporting the digital economy.

Think e-payments, drones, on-demand movies AI, and app. And think self-driving cars, cybersecurity, multi-player games, infinite scroll and advanced tech today’s digital-native kids take as a given.

Fact: the world has an insatiable appetite for data, and the centres that host them play an increasingly critical role.

Data centres are specialised facilities that house large groups of networked computer servers and storage systems. 

They are the backbone of today’s digital economy, powering cloud computing, streaming services, social media, financial transactions, AI systems, and corporate IT operations.

Inside, they provide critical functions like:

Data centres, in addition to highways, bridges and airports, have become an integral part of what is generally known as “infrastructure”.

The build-up is global, with billions of dollars poured into new data centres, reflecting their importance in our tech-driven world. 

There are number of reasons for the industry boom. Let’s break it down:

Reason #1: Need is there.

There’s been a surging demand for cloud services, artificial intelligence (AI), and digital transformation, which rely on data centres for their efficient operations.

Reason #2: There’s money to be made.

One study shows that for every $1 invested in a new data centre, an estimated $5 to $7 in economic activity is generated in similar sectors.

Reason #3: Limited supply.

Currently, the supply-and-demand situation in data centres looks like there’s a huge room to grow. In 2024, an estimated $416 billion were invented in data centres. The Financial Times projects that figure to reach $624 billion by 2029.

Who’s gonna win this game? Too early to say. The reality is that countries are rushing to dominate data centres.

Why does it make sense to have them? In turns out that owning massive, efficient data centres is like owning the digital ports and highways of the future.

They drive economic strength, ensure national security, and unlock leadership in the next wave of technological innovation.

Yes, it's in the best interest of every country to build their own data centre infrastructure.

They require advanced infrastructure — (5G, preferrably) high-speed internet, powerful cooling systems, and stable electricity — to keep servers running 24/7.

So why the rush to dominate data centres?

The global race for data center dominance is heating up for several reasons:

There are a number of studies highlighting the benefits of having massive data centres.

The Global Data Center Survey, conducted by the Uptime Institute (2023), found that data centres contribute directly to GDP growth and regional development. 

For every $1 invested in a new data center, an estimated $5 to $7 in economic activity is generated in surrounding sectors like construction, energy, and IT services. [Source: Uptime Institute 2023 Global Data Center Survey]

In its 2023 report, "The Future of Digital Infrastructure", McKinsey & Co emphasised that countries with robust domestic data center ecosystems gain competitive advantages in AI training, e-commerce, and cloud services. Their analysis shows that regions with heavy data infrastructure investment outpace others by up to 40% faster in digital economy growth.

Meanwhile, the International Energy Agency (IEA) reported that large-scale, energy-efficient data centres are vital for sustainable digital expansion.

Countries investing in green data centers can both grow their digital economies and meet climate goals, positioning themselves as global tech leaders.