Goldman Sachs Raises U.S. Data Center Construction Spending Forecast to $125 Billion by 2028

Goldman Sachs has raised its forecast for U.S. data center construction spending, increasing the expectation for 2026 from $67 billion to $80 billion, and for 2027 from $87 billion to $100 billion, with a first-time estimate of reaching $125 billion in 2028. Currently, there are approximately 86 GW of data center projects under construction in the U.S., along with about $900 billion in high-confidence projects awaiting construction, indicating that the overall construction cycle remains resilient. Demand from cloud service providers such as Microsoft, Amazon, and Google has not significantly cooled, with rental prices for H100 computing power rising by 26% year-on-year and GB200 rental prices increasing by 50% since the beginning of the year. In response to the data center pause order proposed by Texas Governor-elect Gina Hinojosa, Goldman Sachs believes that the impact will mainly delay project deliveries rather than directly cancel construction plans, potentially leading to increased financing costs, reduced tax incentives, and some clients canceling contracts. Goldman Sachs warns that the overall growth prospects for the industry must be distinguished from the survival capabilities of individual developers, as highly leveraged data center developers may face financial pressure due to project delays and rising financing costs, with some companies potentially unable to sustain until project production begins.

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