Amid the boom in artificial intelligence, the global data centre sector is poised to pursue its unprecedented expansion, with capacity expected to nearly double from 103 gigawatts to 200GW by 2030, according to a new report.

Despite AI’s rapid growth, the fundamentals for the data centre sector remain healthy and property metrics do not point to a bubble, New York-listed commercial real estate firm JLL says in its 2026 Global Data Centre Outlook.  

The explosive growth will require up to US$3 trillion in total investment over the next five years, including US$1.2 trillion in real estate asset value creation and approximately US$870 billion in new debt financing, marking an infrastructure investment supercycle, according to the report.

“We’re witnessing the most significant transformation in data centre infrastructure since the original cloud migration,” says Matt Landek, global division president, data centres and critical environments, at JLL. “The sheer scale of demand is extraordinary. Hyperscalers are allocating US$1 trillion 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 are forecast to represent 50% of all data centre capacity by 2030, compared to approximately 25% in 2025. JLL says a critical inflection point could come 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,” says 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 US$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, according to the report.  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

According to JLL, the Americas will remain the largest data centre region, representing about 50% of global capacity and achieving the fastest growth rate through 2030. The Asia-Pacific region is projected to expand from 32GW to 57 GW, while Europe, the Middle East and Africa will add 13GW of new supply.

Each region faces distinct market dynamics that will shape development strategies. In the APAC region, colocation is leading the growth, while on-premise capacity is projected to decline 6% as enterprises continue cloud migration. Growth in Europe, the Middle East and Africa ( EMEA ) is expected to be fuelled by strong demand from hyperscalers. The expansion will be concentrated in established European hubs such as London, Frankfurt and Paris, alongside emerging Middle Eastern markets pursuing digital transformation strategies. The United States continues to drive most activity in the Americas, accounting for about 90% of regional capacity.

Fundamentals strong

Property metrics do not indicate a bubble, JLL says. 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 compound annual growth rate of 5% through 2030, with the Americas leading at 7% CAGR amid severe supply constraints.

Meanwhile, 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, including the use of natural gas and battery energy storage systems ( BESS ). According to the report, 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. 

The sector is experiencing significant capital markets maturation, with core investment strategies now representing 24% of fundraising activity, up from less than 10% previously, JLL says. More than US$300 billion in global M&A activity has occurred since 2020, though future investment is expected to shift towards recapitalizations and joint ventures as the market matures.