Digital infrastructure to reach $1.32T by 2035 as AI shifts hardware demand

For the streaming industry, this infrastructure supercycle signals a move toward deeply integrated media-AI stacks where encoding and personalization are no longer just software features but hardware-dependent workflows. As rack densities approach 100kW, streaming platforms must decide between leasing hyperscale capacity or investing in high-density hybrid models to support real-time tasks like AI-driven localization and semantic search. Investors should track the transition to direct-to-chip liquid cooling as a proxy for a facility's ability to host next-generation video processing units.

The pressure on digital infrastructure is already manifesting in the physical layer of the data center. Per Deloitte in March 2026, next-generation AI racks are expected to reach up to 370kW in 2026, a jump that renders traditional air cooling obsolete and makes liquid cooling and advanced power architectures a line-item necessity. This crunch is leading to a global shift in site selection priorities. Per CBRE in late 2025, power availability has officially surpassed connectivity as the primary factor for new data center locations, with wait times for grid connections reaching up to five years in premium markets like Northern Virginia.

In the streaming sector, these infrastructure shifts are enabling immediate operational gains. Per reporting from Fora Soft in May 2026, operators treating AI infrastructure as 'table stakes' are currently achieving 20% to 40% reductions in egress and storage costs through ML-driven ABR and per-shot optimization. Companies like NVIDIA and Wiwynn are responding by moving beyond simple rack delivery toward 'AI-ready' integrated systems where cooling, network, and hardware are co-optimized before deployment. Furthermore, the push for digital sovereignty is driving localized expansion; for instance, Amazon committed over •33 billion to Spanish infrastructure in March 2026 to ensure its AI and cloud services comply with emerging jurisdictional mandates.