Nvidia Projects Data Center Spending to Reach $4 Trillion by 2030

Market volatility and uncertainty regarding the war in Iran recently triggered a sell-off of artificial intelligence stocks, as investors questioned the returns on massive infrastructure spending. Despite this, Nvidia Corporation projects that global data center capital expenditures will increase to between $3 trillion and $4 trillion by 2030. The company expects its Blackwell and Rubin chip sales to reach $1 trillion in lifetime revenue through 2027.

Industry growth is supported by AI hyperscalers, with the four largest expected to spend $650 billion in 2026 alone, excluding China. This growth is mirrored in the cloud sector, where Alphabet Inc. and Microsoft Corporation reported year-over-year revenue increases for Google Cloud and Azure of 48% and 39%, respectively. Broadcom Inc. also expects its custom AI chips to generate over $100 billion in annual revenue by the end of 2027.

Manufacturing dominance remains concentrated at Taiwan Semiconductor Manufacturing Company, which holds a 72% share of the global foundry market. TSMC reports a 90% yield on 3-nanometer wafers, significantly outperforming Samsung Electronics, which achieves a 50% yield. Other sector expansions include Palantir Technologies, whose Maven Smart System was adopted as an official program of record by the U.S. military, and Nebius Group, which expects its annual run rate to reach $9 billion by the end of 2026.