Don’t Let $300+ Billion in 2025 Cloud Development Crowd You Out

We recently published a blog post on the widespread difficulty organizations have controlling cloud costs.  You are paying for convenience when using the cloud and pay you will.  Last year Amazon Web Services (AWS) recorded quarterly profit margins of 37.6% and 38%.  This is no surprise for those who have been stunned by the egress fees billed to them by their cloud provider. 

Even understanding the revenue the public cloud providers are producing, proposed capital expenditures for the largest cloud providers are still stunning.

Microsoft has announced plans to spend over $80 billion on AI data center development in 2025. Amazon Web Services is planning to invest $100 billion, Google’s capital allocation is $75 billion, Meta’s plans call for over $60 billion in data center infrastructure spend this year.  

That’s $315 billion for those three companies in 2025 alone.  Alibaba looks like a relatively minor player, spending $53 billion from 2025-2027.  These investments are on top of a 34% increase in data center supply in 2024 and a 26% increase in 2023.  

Data center development has already stretched contractors and supply chains to the breaking point. With all these mega-data centers under construction or being planned, what are your plans for data center infrastructure?  Are you in danger of being crowded out?  

Direct LTx has inventory available here in Eastern Pennsylvania.   If you’re interested in upgrading the quality, resiliency, security, and connectivity of your data center, email strategy@DirectLTx.com for a conversation or to arrange a data center tour.