Data center spending is driving foreign investment levels, and UAE-based investors are behind some of the biggest deals.
Declining appetite for industrial and large-scale infrastructure, and a renewables boom that “appears to have run out of steam” were partly supplanted by the sheer scale of capital poured into data centers and semiconductor manufacturing last year, according to the United Nations Conference on Trade and Development (UNCTAD).
The total value of projects globally remained high in 2025: Investments in new data centers surpassed $270 billion, representing more than one-fifth of all investment projects, according to UNCTAD. A pair of $20 billion project finance deals — Dubai-based developer DAMAC Properties’ commitment in the US and a massive data center in Abu Dhabi — are among the biggest of 2025.
The changing tide toward technology-intensive sectors is making it more challenging for lower-income countries to attract foreign investors, according to the trade body. FDI rose by 22% in high-income economies and declined by 5% in lower-income countries last year.