AI supercharge drives USD $3 trillion data centre boom

The global data centre industry is set for an investment surge of up to USD $3 trillion over the next five years as artificial intelligence reshapes infrastructure needs and pushes total capacity towards 200GW by 2030, according to new forecasts from property services group JLL.

JLL projects installed data centre capacity will rise from 103GW in 2024 to 200GW by the end of the decade. It expects AI workloads to account for half of all capacity by 2030, up from around a quarter in 2025.

The firm estimates the growth cycle will generate USD $1.2 trillion of new real estate asset value and about USD $870 billion of new debt financing. It describes the phase as an infrastructure investment supercycle, driven by cloud and AI demand and constrained power and grid access in major markets.

Matt Landek, Global Division President, Data Centres and Critical Environments at JLL, said the industry is undergoing a fundamental shift.

"We're witnessing the most significant transformation in data center infrastructure since the original cloud migration," said Matt Landek, Global Division President, Data Centres and Critical Environments, JLL. "The sheer scale of demand is extraordinary. Hyperscalers are allocating $1 trillion for data center 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."

JLL's analysis indicates that, despite the rapid expansion, the sector continues to show high utilisation and strong pre-leasing. It reports global occupancy at 97% and says 77% of the construction pipeline is already committed to tenants.

The firm forecasts global lease rates will increase at a compound annual growth rate of 5% through 2030. It expects the Americas to lead with 7% annual growth due to tight supply and grid bottlenecks.

AI reshapes demand

AI workloads are forecast to grow from around 25% of global data centre capacity in 2025 to 50% by 2030. JLL expects a turning point in 2027, when AI inference workloads overtake training as the main use case.

The shift is driving changes in design standards and pricing. AI training facilities require significantly higher power density than traditional sites and achieve higher lease rates, according to JLL.

"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 centers," said Andrew Batson, Global Head of Data Centre 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 CapEx opportunity by 2030."

AI-specialised chips are also set for rapid expansion. JLL expects AI chips to increase their share of total semiconductor market revenue from 20% today to 50% by 2030. It forecasts custom silicon, including in-house processors developed by hyperscale cloud providers, will reach a 15% share.

The report highlights emerging technologies such as neuromorphic computing for ultra-efficient AI inference tasks. These systems could reduce power and cooling requirements and lower overall infrastructure demands at future data centres.

Regional growth split

The Americas are expected to remain the largest regional market, with around 50% of global data centre capacity by 2030 and the fastest growth rate. JLL says the US will continue to dominate regional activity and will account for about 90% of capacity in the Americas.

The Asia-Pacific region is projected to grow from 32GW to 57GW of capacity by 2030. JLL notes that colocation providers are driving most of the new development in APAC. It expects on-premise capacity in the region to fall 6% as enterprises continue to move workloads into the cloud.

In Europe, the Middle East and Africa, JLL forecasts an additional 13GW of supply. It says demand from hyperscalers will underpin the region's expansion.

Growth in EMEA is concentrated in established European hubs such as London, Frankfurt and Paris. JLL also points to emerging demand in Middle Eastern markets that are pursuing broad digital transformation programmes.

Supply and delays

JLL reports that developers are preordering equipment and materials up to two years ahead of construction. Despite this, more than half of projects scheduled for 2025 experienced delays of at least three months.

The firm says average global equipment lead times now stand at 33 weeks. This figure has increased by around 50% compared with pre-2020 levels, reflecting congestion in supply chains for critical electrical and cooling components.

Modular construction is gaining traction as investors and operators look for faster delivery. JLL expects annual sales of modular systems and micro data centres to reach USD $48 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," said Glen Duncan, JLL Data Centre Research Director, Asia Pacific.

Energy and grids

Power access remains a central constraint on new developments in leading data centre markets. JLL says average grid connection lead times in primary locations now exceed four years.

Rising grid electricity costs and utility interconnection delays are prompting some operators to invest directly in generation assets. JLL points to markets such as Dublin and Texas, where regulators and utilities have implemented what it describes as de facto "bring your own power" requirements for large new facilities.

Data centre operators are diversifying energy strategies by region. JLL expects natural gas to play a major role in the US in reducing pressure on local grids. The fuel is being adopted both for temporary bridge power solutions and for permanent on-site generation.

JLL says the four largest hyperscale operators already fully match their US data centre portfolios with renewable energy purchases. In EMEA, it highlights projects that combine renewable generation with private wire transmission, which can lower tenant power costs by up to 40% compared with standard grid tariffs.

Battery energy storage systems are gaining ground as a way of handling short power interruptions and smoothing demand profiles. JLL says these systems are emerging as grid-supportive assets that can shorten interconnection timelines for new sites.

The firm expects solar-plus-storage to become a core component of global data centre energy planning by 2030. It forecasts that renewable energy costs will undercut fossil fuels in all major regions by the end of the decade.

Capital markets shift

Investment strategies around data centres are also evolving. JLL reports that core strategies now make up around 24% of fundraising activity in the sector, compared with less than 10% previously.

The firm tracks more than USD $300 billion of global mergers and acquisitions in data centres since 2020. It expects future deal flow to focus increasingly on recapitalisations and joint ventures as the market matures.

JLL says global data centre core fund capital formation could exceed USD $50 billion in 2026. Many of these vehicles are targeting returns of 10% or more.

The sector is also drawing on structured debt markets. JLL notes that issuance of asset-backed securities and commercial mortgage-backed securities linked to data centre assets has roughly doubled each year since 2020. It expects volumes to reach USD $50 billion in 2026.

Landek said investors, operators and policymakers are adjusting strategies around power, location and financing as the new growth cycle unfolds.