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DATA CENTRE BOOM DRIVING PROPERTY SHAKE-UP WORLDWIDE
Surging demand for data infrastructure, fuelled by cloud computing and AI, is transforming real estate markets globally, according to a new 2025 report from Cushman & Wakefield.
While power availability and capacity in the data centre construction pipeline are key factors in identifying the top data centre markets worldwide, the 2025 edition of Cushman & Wakefield’ s Global Data Center Market Comparison analyses 20 critical variables tailored to hyperscale and colocation operators, occupiers and developers across 97 global markets.
“ We expect total capacity to continue its incredible growth trajectory across all global regions, with each expected to at least double based on the current development pipelines,” said John McWilliams, Head of Data Center Insights.
“ The industry experienced rapid expansion throughout the past year, a trend we expect to continue into 2025 and 2026. Artificial intelligence( AI) and Machine Learning( ML), which gained prominence in 2022, are key drivers of this demand now and into the future.”
The 2025 report said that while mature markets like Virginia, Beijing and London continue to dominate, rising land costs and regulatory restrictions are opening doors for emerging regions poised to redefine the global data centre map.
“ The next frontier isn’ t just about connectivity, it ' s about access to scalable land, power infrastructure and favourable economics,” said McWilliams.“ Emerging markets are gaining traction, but established hubs continue to lead the way, backed by larger development pipelines, mature infrastructure and steady demand that keeps them at the centre of global data centre activity.”
Key trends include:
• Land demand and suburban shift: Larger site acquisitions for phased campus developments are becoming the norm, pushing data centre projects away from urban cores and into suburban and rural areas. Virginia, Phoenix and Sydney rank among the top markets for land availability, as developers prioritise locations that support scalability and power integration.
• Record pipeline growth: The Americas lead in planned data centre capacity, with Virginia boasting a staggering 15.4GW in its development pipeline. Land values remain a top consideration in mature markets, driving greater attention to more cost-effective emerging
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THE NEXT FRONTIER ISN’ T JUST ABOUT CONNECTIVITY, IT’ S ABOUT ACCESS TO SCALABLE LAND, POWER INFRASTRUCTURE AND FAVORABLE ECONOMICS.
locations like Johor and Pennsylvania.
• Powered land becomes gold standard: Land with pre-secured utility commitments is in high demand, with developers and even non-traditional buyers like electric vehicle and chip manufacturers competing for sites. These parcels offer a guaranteed path to power amid rising power constraints and long utility lead times.
• Investment surges across real estate spectrum: The sector continues to attract significant institutional investment, with a sharp rise in joint ventures, mergers and acquisition activity across colocation, hyperscale and infrastructure outfits. Recently capitalised firms are increasingly targeting both established and emerging markets, fuelling rapid pipeline growth and positioning data centres as one of the fastest-growing real estate asset classes globally.
• Land pricing and competition intensify: While the Americas enjoy lower land costs overall, increased competition in top-tier markets has driven pricing upward. Midwestern US markets like Indianapolis and Iowa remain among the most affordable, attracting spillover demand from more expensive neighbours. �
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