Morgan Stanley estimates that a US data center designed for the Vera Rubin era will cost approximately $49 billion per gigawatt, $20 billion more than three years ago. The increase is driven by rising GPU and memory prices, longer delivery times, scarce materials and a shortage of skilled labor. Off-rack spending also increased from $11 million–$13 million per megawatt to $16 million–$19 million per megawatt. Despite these costs, the bank raised its capital expenditure forecasts for the five largest hyperscale cloud providers by 9%–10%, to $1.2 trillion in 2027 and $1.4 trillion in 2028. It estimates US data center power demand will reach 97–116 gigawatts by 2028, with a potential shortfall of up to 70 gigawatts, or 33–43 gigawatts after mitigation, with former Bitcoin mining sites cited as one possible solution.
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