At the recently held Data Center World 2025, Omdia analyst Alan Howard provided insights into significant shifts in the data center industry. His comments were particularly focused on the optimistic forecast that the data center capital expenditure could reach $1 trillion by 2030.

Howard explained recent headlines regarding Microsoft’s slowdown in construction, stating that these changes are reflective of evolving relationships in business and long-term land banking strategies rather than indicating any overall market decline.

Discussing the concept of "AI factories," Howard clarified the distinction between genuine AI-centric data centers and those that merely market themselves as such. He stated that while some facilities are indeed optimized for intensive AI applications, fully integrated AI data centers remain quite rare.

Howard’s insights are vital for industry stakeholders looking for clarity amidst the rapidly changing landscape of data center investments and technology trends.

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