In 2025, global data center transactions shattered records, reaching $61 billion, propelled by the relentless demand for artificial intelligence infrastructure. Hyperscalers like Microsoft, Amazon, Google and Meta are racing to expand capacity, but investors are growing wary of the mounting debt and valuation risks tied to this boom. The surge reflects a construction rush amid power constraints and funding pressures, as reported by CNBC.

This year’s deal volume marks a significant escalation from prior periods, driven by AI’s voracious appetite for compute power. Companies are increasingly tapping external capital, particularly debt, to finance energy-hungry facilities. Real estate investment trusts and private equity firms have snapped up portfolios, betting on long-term leases to tech giants.

Record Deals Amid Surging Demand

Synergy Research Group data shows data center mergers and acquisitions hit this peak, with hyperscalers turning to outside funding as capex balloons. “Hyperscalers are increasingly turning to outside capital in the form of debt to fund the energy-intensive infrastructure,” CNBC noted, highlighting deals like Blackstone’s acquisitions.

Posts on X echo the frenzy, with users pointing to Microsoft, Alphabet, Meta and Amazon planning $370 billion in AI infrastructure spending for 2025 alone. Harvard economist Jason Furman estimated data center investments drove nearly all U.S. GDP growth in the first half of the year, per discussions on the platform.

Debt Hotspots Emerge in Expansion

Reuters identified five debt vulnerabilities: complex financing structures, rapid depreciation of AI hardware, grid bottlenecks and overleveraged developers. AI data centers require massive upfront costs, with chips lasting just 2-4 years, leading to $40 billion annual depreciation on 2025 builds against $15-20 billion in revenue, according to analyses shared on X.

Oracle’s debt load is already impacting its expansion plans, as CNBC reported. Despite AI stocks pulling back, Bank of America sees potential for the trade to extend into 2026, but financing strains are evident.

Power Grid Strains Test Ambitions

The U.S. grid lacks capacity to support the boom, with data centers projected to consume 8% of national power by 2030. McKinsey estimates AI alone demands $5.2 trillion in computing investments through 2030, 60% on technology hardware, fueling posts on X about the $6.7 trillion total spend.

Financial Times detailed private capital joining Big Tech in a $3 trillion building push, with costs surging 47% year-over-year. Construction spending on data centers hit $45 billion, surpassing office builds at $42 billion.

Investor Skepticism Grows

AI infrastructure stocks have taken a beating, per CNBC, as clients demand financial stability. Databricks raised funds at a $134 billion valuation, exemplifying mega-rounds for private firms, but concerns linger over revenue matching depreciation.

Data Center Knowledge reviewed 2025’s top projects, noting scale and strain. Grassroots opposition has led to billions in canceled deals, as The Verge covered community pushback.

Billionaire Boom and Valuation Risks

Bloomberg tracked 16 new billionaires from data center firms, worth $37 billion collectively. Yet, WSJ analyses shared on X warn power limits and revenue gaps could shrink builds despite capex pledges.

Amazon, Microsoft, Alphabet and Meta’s spending outpaces GDP contributions, but execution risks mount. Investors scrutinize debt hotspots, with Reuters warning of bubble signs in financing.

Future Fault Lines

By 2030, $3.1 trillion targets tech hardware amid grid upgrades lagging demand. X discussions highlight U.S. investments quadrupling to $45 billion in four years, now eclipsing human workspaces. The $61 billion deal wave signals commitment, but debt dynamics and physical limits will shape the AI era’s infrastructure reality.