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Global data centre build-out projected to require $3tn
The global data centre sector is poised for continued unprecedented expansion, with capacity expected to nearly double from 103 GW to 200 GW by 2030, according to real estate and investment management company JLL’s newly released 2026 Global Data Center Outlook report.
Artificial intelligence is rapidly reshaping the data centre landscape, and JLL anticipates AI workloads will represent half of all data centre capacity by 2030. Despite rapid growth, the fundamentals for the sector remain healthy and property metrics do not point to a bubble.
The explosive growth will require up to $3 trillion (£2.2 trillion) in total investment over the next five years, including $1.2 trillion (£887 billion) in real estate asset value creation and approximately $870 billion (£643 billion) in new debt financing, marking an infrastructure investment supercycle.
“We’re witnessing the most significant transformation in data centre infrastructure since the original cloud migration,” notes Matt Landek, Global Division President, Data Centers and Critical Environments at JLL. “The sheer scale of demand is extraordinary. Hyperscalers are allocating $1 trillion (£739 billion) for data centre spend between 2024 and 2026 alone, while supply constraints and four-year grid connection delays are creating a perfect storm that’s fundamentally reshaping how we approach development, energy sourcing, and market strategy.”
AI drives transformation
AI workloads could represent 50% of all data centre capacity by 2030, compared to approximately 25% in 2025. JLL anticipates a critical inflection point in 2027 when AI inference workloads will overtake training as the dominant requirement.
“We’re witnessing the emergence of an entirely new infrastructure paradigm where AI training facilities demand 10x the power density and command 60% lease rate premiums over traditional data centres,” explains Andrew Batson, Global Head of Data Center Research at JLL. “Beyond the economics, AI has become a matter of national strategic importance, driving countries to develop domestic capabilities through sovereign infrastructure investments that represent an $8 billion (£6 billion) CapEx opportunity by 2030.”
AI chips are projected to grow their total revenue share from 20% to 50% of the semiconductor market by 2030, with custom silicon expected to capture 15% market share as hyperscalers develop their own processors. The future could include emerging technologies like neuromorphic computing for ultra-efficient inference tasks that could reduce infrastructure demands and enable data centres to be more power-efficient.
Regional growth patterns
The Americas will maintain its position as the largest data centre region, representing about 50% of global capacity and achieving the fastest growth rate through 2030. The Asia-Pacific (APAC) region is projected to expand from 32 GW to 57 GW, while Europe, the Middle East, and Africa (EMEA) will add 13 GW of new supply.
Each region faces distinct market dynamics that will shape development strategies. In APAC, colocation is leading growth, while on-premise capacity is projected to decline 6% as enterprises continue cloud migration. EMEA’s growth forecast is fuelled by strong demand from hyperscalers, with growth concentrated in established European hubs like London, Frankfurt, and Paris, alongside emerging Middle Eastern markets pursuing digital transformation strategies. The US continues to drive most activity in the Americas, accounting for about 90% of regional capacity.
Market fundamentals remain strong
Property metrics do not indicate a bubble, as JLL’s analysis indicates the sector maintains healthy fundamentals with 97% global occupancy and 77% of the construction pipeline pre-committed to tenants.
Global lease rates are forecast to increase at a 5% CAGR through 2030, with the Americas leading at 7% annual growth due to severe supply constraints.
Despite developers preordering materials up to 24 months in advance, more than half of projects in 2025 experienced construction delays of three months or more. The average equipment lead time globally is now 33 weeks, a 50% increase from pre-2020 levels. The industry is responding through modular construction solutions, with annual sales of modular systems and micro data centres projected to reach $48 billion (£35 billion) by 2030.
“The increase in equipment lead times is affecting APAC just as it is globally, but strong pre-commitment levels demonstrate continued confidence in the market,” says Glen Duncan, JLL Data Center Research Director, Asia Pacific.
Energy and sustainability challenges
Energy sourcing remains a critical challenge, with average grid connection lead times exceeding four years in primary markets. Due to utility interconnection delays and mounting pressure from rising grid electricity costs, some operators are moving to directly fund their own energy generation, and several markets have implemented de facto 'bring your own power' mandates, including Dublin and Texas.
Data centres are also adopting diverse regional energy strategies to address grid constraints. Natural gas is projected to play a major role in alleviating grid constraints in the US, both for temporary bridge power and increasingly for permanent on-site power generation. The four primary hyperscalers are already fully matching their US data centre portfolios with renewable energy. In EMEA, projects combining renewables and private wire transmission can reduce the cost of power for tenants by 40% compared to the grid.
Battery energy storage systems (BESS) are gaining momentum, enabling cost-effective handling of short-duration outages and positioning the technology as a dynamic grid asset to speed up interconnection timelines. Additionally, solar-plus-storage will become a key component of global data centre energy strategies by 2030, with renewable energy costs projected to outcompete fossil fuels across all major regions.
“As regulatory and stakeholder expectations around renewable energy sourcing increase globally, data centre operators will face heightened scrutiny over their energy procurement,” suggests Martin Jensen, EMEA Division President, Data Centers at JLL. “While renewables like solar and wind remain the dominant focus of clean energy strategies, power sources such as nuclear are gaining attention for their ability to provide reliable electricity and help balance sustainability requirements with operational continuity; however, significant new nuclear capacity is unlikely to be widely deployed before the 2030s.”
Capital markets evolution
The sector is experiencing significant capital markets maturation, with core investment strategies now representing 24% of fundraising activity, up from less than 10% previously. More than $300 billion (£221 billion) in global M&A activity has occurred since 2020, though future investment is expected to shift towards recapitalisations and joint ventures as the market matures.
Global data centre core fund capital formation could top $50 billion (£37 billion) in 2026, with strategies targeting returns of 10% or more. ABS and CMBS securities are quickly becoming a solution for financing rapid sector expansion, with issuance volumes roughly doubling every year since 2020 and projected to reach $50 billion (£37 billion) in 2026.
For more from JLL, click here.
Joe Peck - 6 January 2026