The massive data processing and storage needs for AI has thrusted data center development into the spotlight.

“As generative AI technology becomes more seamlessly integrated into our everyday lives, the appetite for data will inevitably increase,” says Christopher Street, Managing Director of Data Centers, Asia Pacific, JLL.

Globally, the number of hyperscale sites in development is expected to double by 2024, up from 500 sites just five years ago, JLL data shows.

“We’ve seen a substantial increase in the size of campus builds, with constructions exceeding 100 megawatts becoming commonplace, compared to the past when a 20-megawatt requirement was considered large,” Street says.

These newbuilds are also getting greener as operators come under pressure to address the environmental impact of these facilities. This is driving a stronger emphasis on sustainability and energy efficiency through improvements in technology and the adoption of renewable energy in these facilities, according to Street.

AI-powered buildings are becoming the new normal as developers count on smart technologies to deliver buildings with high sustainability performance.

“With all generative AI applications, the key for real estate owners and users will be to create the right prompts to connect insights across essential elements such as human experience, real estate performance, and sustainability to learn and address new opportunities,” says Albert Ovidi, Chief Operating Officer, Markets, Asia Pacific, JLL.

“Another key opportunity is to further integrate AI with existing technologies such as robotics, drones, and digital humans to “see” different parts of a building and improve feedback and communication with the building and its users,” Ovidi says.

For instance, Hong Kong’s One Taikoo Place uses AI to identify, interpret, and integrate data from disparate building systems, equipment, and devices. The Grade A office tower reaps energy savings through predictive maintenance and operational workflow improvements.

But it’s not just office buildings where AI is expected to emerge.

“There are already sophisticated AI solutions used in supply chains, but not necessarily in terms of its real estate,” says Ovidi. “New technologies could enhance the analysis of the role of warehouses and determine where to place production versus distribution.”

AI is increasingly being deployed to accelerate the pace of transactions and unlock detailed analytics of properties and markets for investors.

The ability of AI to scan data and find meaningful patterns at speed means it can offer valuable recommendations aligned with an investor's objectives, risk tolerance, and market conditions.

An example is JLL’s Capital Markets Quants platform powered by AI and machine learning. By analyzing data from over 1.25 million properties transacted globally in the past 20 years, the platform predicts real estate shifts and opportunities that support advisors in optimizing their clients’ portfolio strategies.

Co-working operators are also finding new revenue streams from AI. Data collected and analyzed by AI algorithms can help predict future space demand to optimize energy usage and plan space utilization more effectively, which potentially opens new doors for expansion.