Global foreign direct investment in the digital economy now accounts for 8.3% of worldwide FDI compared to 5.5% a decade ago. Greenfield investment projects in the semiconductor industry increased by 35% in 2025, revealing a structural reorientation of global capital. This transformation, fueled by artificial intelligence and industrial policies, is redrawing the world’s economic map but paradoxically intensifying inequalities between developed and emerging economies.
The dramatic rise of the digital economy in international investment flows is accompanied by unprecedented geographic concentration. While ten countries capture 80% of new digital projects worldwide, the least developed economies remain excluded from this financial windfall that could offer them catch-up opportunities.
The essentials
- The digital economy represents 8.3% of global FDI on average between 2021-2023, compared to 5.5% a decade earlier
- Greenfield projects in semiconductors increased by 35% in 2025
- Ten countries concentrate 80% of new digital projects, excluding many developing economies
- Global FDI fell by 11% in 2024 for the second consecutive year
Data centers reshape the geography of investments
Data centers represent more than one-fifth of global greenfield project values, establishing themselves as one of the privileged destinations for new foreign direct investments. In 2025, announced investments in this sector exceed $270 billion, driven by the infrastructure needs of artificial intelligence and digital networks.
This rush toward digital infrastructure is transforming regional balances. France, the United States, and the Republic of Korea dominate as host countries, while emerging markets such as Brazil, India, Thailand, and Malaysia also attract major projects. The global semiconductor market for data centers surged by 65% in 2024 to reach more than $180 billion, illustrating the scale of this transformation.
Demand is exploding due to artificial intelligence. In 2024, the total semiconductor market for data centers reached $209 billion and is expected to approach $500 billion by 2030. GPUs dominate with $100 billion in 2024, while specialized AI chips will reach nearly $85 billion by 2030.
The semiconductor industry attracts industrial policies
Semiconductors have benefited from a restructuring of supply chains and strong demand for advanced chips used in AI infrastructure, with a 35% increase in the value of new projects announced in 2025. This dynamic is supported by proactive industrial policies.
The semiconductor industry is entering its largest expansion in history, with more than $1.5 trillion in investments planned for new manufacturing facilities between 2024 and 2030. The American CHIPS Act has unlocked more than $630 billion in semiconductor-related investments across 28 states, with Intel receiving $7.86 billion in direct funding and an additional $3 billion for secured government production.
This race for capacity reveals the strategic importance of the sector. The industry will need an additional 100,000 engineers by 2030 to meet production needs. Wafer manufacturing is expected to increase by 7% annually in 2025, with 12% growth for advanced nodes and capacity utilization rates maintained above 90%.
The digital economy deepens the global divide
Despite this expansion, the 14% growth in FDI in the digital economy remains highly concentrated, with ten countries capturing 80% of all new digital projects and excluding many developing economies from the benefits of the digital boom. This geographic polarization reveals the structural limitations of the international investment system.
The lack of ICT infrastructure remains a major challenge for digitization in the Global South. In 2024, of the $62 billion needed to build these infrastructures in developing countries, only $9 billion was invested. The gap is widening between regions: Africa received only 18 fintech projects in 2024, nearly 200 fewer than developing countries in Asia, and only 3% of data center investments.
ECB data contradicts the dominant narrative about AI destroying jobs in developed countries, but this technological transformation is unfolding unevenly across the planet. Political restrictions create additional barriers, with many developing countries limiting foreign ownership in critical infrastructure, while developed economies strengthen FDI controls for national security reasons, with up to 60% of controlled projects now targeting digital sectors.
Traditional FDI declines in favor of the digital sector
Global foreign direct investments fell by 11% in 2024, marking the second consecutive year of decline. Although FDI increased by 4% to reach $1.5 trillion, this increase results in part from volatile financial flows across several European economies serving as transit points.
The contrast is striking between sectors. While greenfield investments remained stable, international project financing plummeted by 26% in 2024, particularly in sectors critical to the Sustainable Development Goals: renewable energy (-31%), transport (-32%), and water/sanitation (-30%). Meanwhile, international project financing in semiconductors and the digital economy jumped by 140% and 107%, respectively.
This reallocation questions global investment priorities. Current investment levels remain far insufficient to meet global needs. Closing the Sustainable Development Goals financing gap alone would require approximately $4 trillion per year in developing countries.
Geopolitics reshapes digital flows
FDI flows to developed economies jumped by 43% to reach $728 billion in 2025, reflecting the concentration of strategic technology-focused investments. The European Union recorded an increase of 56%, supported in part by technology-related agreements.
Geopolitics directly influences this redistribution. China is intensifying its national capacities through strategic investment and public policies. Export controls continue to impact supply chains but also reinforce sovereign development objectives in China and beyond. This dynamic fuels geographic concentration of digital investments in a few technology hubs.
Investment policy has been affected by the desire to attract capital and develop secure supply chains for critical industries. The use of investment incentives was pronounced in 2024, representing a record 45% of all capital attraction measures. This subsidy race reveals the intensity of competition between states to capture strategic digital investments.
Contrasting perspectives by region
Flows to developing economies fell by 2% to reach $877 billion. Three-quarters of least developed countries recorded stagnant or declining flows. This trend, however, masks significant regional disparities.
Africa saw its FDI jump by 75%, driven by one large project in Egypt. Excluding the latter, flows still progressed by 12%, supported by investment facilitation and regulatory reforms. Southeast Asia showed a 10% increase, reaching $225 billion.
This divergence reveals the importance of national policies. By 2024, most developing countries have national digital strategies—86% globally and 80% of least developed countries, compared to less than half in 2017. Yet few strategies are articulated with broader industrial, environmental, or investment policies, and only 20% mention investment promotion agencies.
The future of global investment plays out in this tension between technological concentration and developmental inclusion. Downside risks are accumulating. Actual investment activity will likely remain muted, weakened by geopolitical tensions, political uncertainty, and economic fragmentation. Without coordinated action, global investment risks becoming more concentrated in a few regions and sectors.
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