Multinational corporations have begun pouring billions of dollars into data centers rather than into oil in 2025. The shift has occurred for the first time in decades, leaving behind the oil industry. Just recently, Anthropic announced to invest $50 billion in data centres in the US, and Microsoft announced a $10 billion investment in Portugal.
The oil industry published data showing that data center investments have outpaced the sector, according to the International Energy Agency (IEA). The data centers are mainly for the advancement of artificial intelligence (AI).
“In recent years, technology companies worldwide have been investing heavily in new data center capacity to train and deploy increasingly large and widely used AI models. In 2025, around $580 billion is estimated to be invested in data centers,” IEA said.
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The global investments in oil are $540 billion, and investments in data centers are $580 billion. The AI technology is ahead by $40 billion in investments. The development indicates that tech giants have taken the advancement of AI seriously.
“This is more than the total global investment in oil supply, which is projected to be around $540 billion in 2025. This point of comparison provides a telling marker of the changing nature of modern, highly digitalized economies,” the IEA agency added.
Oil Losing Demand While Data Centers Gain Upper Hand
The oil sector commanded huge investments a decade ago, but is now losing steam to data centers. Companies such as Apple Inc., among others, are signing partnership deals with energy firms to supply constant power. Larger data centers require powerhouses of more than 100+ watts of electricity.
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Stocks that power data centers must be on your watch list than oil hereon. The technological landscape is changing and could usher in another new era. An investment now, while it’s still in the development phase, could generate massive results over the long term.