- Global data center markets are witnessing unprecedented demand fueled by cloud computing and AI advancements.
- Key trends include a suburban shift for land acquisition and record growth in data center capacity, particularly in the Americas.
- Virginia leads with a robust 15.4GW development pipeline, driving competition and investment across the real estate spectrum.
The latest Cushman & Wakefield (CWK, Financial) report highlights a surge in global data center markets driven by the continuous expansion of cloud computing and artificial intelligence (AI) workloads. Analyzing 97 global markets, the report identifies critical factors such as power access, land acquisition, and infrastructure shaping the future development of data centers.
John McWilliams, Head of Data Center Insights, notes that the total capacity is expected to maintain significant growth across all regions, potentially doubling based on current development pipelines. This trend, driven by AI and machine learning (ML) advancements, is set to persist into 2025 and 2026.
Key trends outlined in the report include a shift towards larger site acquisitions for phased campus developments, which are increasingly pushing projects into suburban and rural areas. Virginia, Phoenix, and Sydney rank among the top markets for land availability, emphasizing the growing importance of scalable locations with integrated power infrastructure.
The Americas lead in planned data center capacity, with Virginia boasting an impressive 15.4GW in its development pipeline. The rising land values in mature markets are prompting developers to explore more cost-effective locations, such as Johor and Pennsylvania.
Increased institutional investment is another pivotal trend, with joint ventures, mergers, and acquisition activities across colocation, hyperscale, and infrastructure sectors. The continuously expanding pipeline positions data centers as one of the fastest-growing real estate asset classes globally.
Despite the increasing land costs and regulatory challenges in mature markets like Virginia, Beijing, and London, emerging regions show potential for reshaping the global data center landscape. McWilliams states that the new frontier is not just about connectivity but access to scalable land and favorable economics.
Cushman & Wakefield (CWK, Financial), a leading global commercial real estate services firm, reported $9.4 billion in revenue for 2024 across its core service lines. For more insights or to download the full report, visit Cushman & Wakefield's website.
