JLL Sees Need for $3T Investment in Data Centers

CHICAGO -- The global data center sector is poised for continued, unprecedented expansion, with capacity expected to nearly double from 103 GW to 200 GW by 2030, according to JLL’s newly released 2026 Global Data Center Outlook.

Artificial intelligence is rapidly reshaping the data center landscape, and JLL anticipates AI workloads will represent half of all data center 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 in total investment over the next five years, including $1.2 trillion in real estate asset value creation and approximately $870 billion in new debt financing, marking an infrastructure investment supercycle.

“We’re witnessing the most significant transformation in data center infrastructure since the original cloud migration,” said Matt Landek, Global Division President, Data Centers and Critical Environments at 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.”

AI drives transformation
AI workloads could represent 50% of all data center 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 centers,” said 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 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 centers to be more power-efficient.

Regional growth patterns
The Americas will maintain its position as the largest data center region, representing about 50% of global capacity and achieving the fastest growth rate through 2030. The Asia-Pacific region is projected to expand from 32 GW to 57 GW, while Europe, the Middle East and Africa will add 13 GW of new supply driven.

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 fueled 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 U.S. continues to drive most activity in the Americas, accounting for about 90% of regional capacity.
“The U.S. market is experiencing a fundamental shift in development strategy, with developers moving toward phased developments of hundreds of megawatts to gigawatts and demanding a preference for single-tenant hyperscale leases over multi-tenant colocation where possible,” said Andy Cvengros, Executive Managing Director and Co-Lead of JLL’s U.S. Data Center Markets. “This reflects the scale and urgency of demand we’re seeing, where speed to power in 2027 for new developments has become the primary criteria driving site selection as traditional location and cost factors take a back seat to energy availability.”

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 centers projected to reach $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 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 centers 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 U.S., both for temporary bridge power and increasingly for permanent on-site power generation. The four primary hyperscalers already fully matching their U.S. data center 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 center 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 center operators will face heightened scrutiny over their energy procurement,” said 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 in global M&A activity has occurred since 2020, though future investment is expected to shift toward recapitalizations and joint ventures as the market matures.

Global data center core fund capital formation could top $50 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 in 2026.

“The rapid emergence of AI and neocloud deals at scale has defined 2025 as a transformative year for the data center and infrastructure sector,” said Carl Beardsley, U.S. Data Center Leader, JLL Capital Markets. “Structuring the capital stack for these newer entities can be complex, as lenders and equity partners need proper security frameworks to protect their multi-billion-dollar investments. The scale and specialized infrastructure requirements of these deals demand innovative financing approaches that balance the growth potential of AI and neocloud technologies with appropriate risk mitigation,” said Carl Beardsley, U.S. Data Center Leader, JLL Capital Markets.

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