CHICAGO, Jan. 13, 2025 – Artificial intelligence applications are rapidly expanding across industries, and the global data center industry plays a critical role in AI adoption and advancement. To meet the exponential data center demand, the sector will grow at a phenomenal pace in 2025. JLL’s 2025 Global Data Center Outlook explores how AI is not only driving demand but the development of more powerful and efficient data center infrastructure that balances computing power and sustainability.

Across the hyperscale and colocation segments, an estimated 10 GW is projected to break ground globally in 2025, while 7 GW will likely reach completion. Based on this current pace of under construction and planned developments, the global data center market will likely expand at a baseline 15% CAGR through 2027 – with the potential to reach 20%. Rapid expansion brings challenges, including demand outstripping supply and electricity development constraints in some markets. The industry also faces numerous opportunities such as the immergence of new technologies providing novel pathways for sustainability.

“The pace of AI innovation is not slowing down, and the data center industry must continue to adapt,” said Jonathan Kinsey, JLL EMEA Lead and Global Chair, Data Centre Solutions. “AI’s transformative power demands have already reshaped our world, yet its most significant and enduring effect may lie in how we rise to meet the substantial energy demands required to fuel this technological revolution. The results will fundamentally reshape data center design and operation.”