Global data center sector to nearly double to 200GW amid AI infrastructure boom

CHICAGO, Jan. 6, 2026 – 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.”

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 are 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.”

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.

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