JLL Sees Global Data Center Capacity Nearly Doubling by 2030

The global data center industry is entering a new phase of accelerated expansion, driven primarily by the rapid rise of artificial intelligence workloads and unprecedented levels of capital deployment. According to the 2026 Global Data Center Outlook published by JLL, total installed data center capacity worldwide is projected to nearly double from roughly 103 gigawatts today to around 200 gigawatts by 2030.

The report characterizes the coming years as a structural growth cycle rather than a speculative surge, arguing that real estate fundamentals remain strong and do not point to a bubble despite the scale and speed of expansion.

At the heart of this growth is AI. JLL estimates that by the end of the decade, AI workloads could account for approximately half of all global data center capacity, compared with around 25% in 2025. The firm describes the shift as the most profound transformation the sector has seen since the initial migration to cloud computing. Hyperscalers alone are expected to spend close to $1 trillion on data center infrastructure between 2024 and 2026, a level of investment that is reshaping development strategies, energy sourcing, and site selection worldwide.

Matt Landek, President of JLL’s Global Division for Data Centers and Critical Environments, said the sheer magnitude of demand is forcing a rethinking of how and where data centers are built. He noted that supply shortages, combined with grid connection delays that can stretch to four years in some markets, are creating structural constraints that are influencing everything from leasing dynamics to power procurement models. The result is what JLL describes as a global infrastructure supercycle, requiring close to $3 trillion in total investment over the next five years. This includes approximately $1.2 trillion in real estate development and around $870 billion in new debt financing.

AI’s impact extends beyond volume to fundamentally altering technical requirements. Andrew Batson, Global Head of Data Center Research at JLL, points out that AI training facilities can require power densities up to ten times higher than traditional enterprise data centers, while commanding lease rate premiums of roughly 60%. The report anticipates a pivotal shift around 2027, when AI inference workloads are expected to overtake training as the dominant source of demand, reflecting the move from model development to large-scale deployment across industries.

The strategic importance of AI infrastructure is also prompting national-level responses. Governments are increasingly viewing AI capacity as a matter of economic competitiveness and security, leading to direct or indirect investment in domestic data center ecosystems. JLL estimates this could translate into as much as $8 billion in additional capital expenditure by 2030 as countries seek to ensure access to advanced computing resources.

The Largest Data Center Region

On the hardware side, the ripple effects are equally significant. AI chips are expected to grow their share of overall semiconductor revenues from about 20% today to 50% by 2030. Custom silicon is projected to capture roughly 15% of the market as hyperscalers design proprietary processors optimized for their workloads. The report also highlights emerging technologies, such as neuromorphic computing, which could eventually reduce power consumption for certain inference tasks, though such approaches remain longer-term prospects.

Regionally, growth patterns vary but point to continued global expansion. The Americas are forecast to maintain their position as the largest data center region, accounting for more than half of global capacity and the highest growth rate through 2030. The United States alone represents close to 90% of capacity in the region. Europe, the Middle East, and Africa are expected to add around 13 gigawatts of new capacity, driven by hyperscaler demand in established hubs such as London, Frankfurt, and Paris, as well as emerging Middle Eastern markets pursuing digital transformation agendas. In Asia-Pacific, capacity is projected to increase from 32 gigawatts to 57 gigawatts, with colocation playing a central role while on-premise enterprise capacity continues to decline as workloads migrate to the cloud.

Despite the breakneck pace of development, JLL argues that market fundamentals remain robust. Global occupancy rates stand at approximately 97%, and around 77% of the current construction pipeline is already pre-leased. These dynamics are expected to support continued rental growth, with global lease rates projected to rise at a compound annual growth rate of 5% through 2030, and up to 7% annually in the Americas. However, supply-side challenges persist. More than half of projects in 2025 experienced construction delays of three months or more, even as developers began preordering equipment up to two years in advance. Average equipment lead times have increased by roughly 50% since 2020, reaching 33 weeks globally.

To mitigate these constraints, developers are increasingly turning to modular construction approaches. JLL forecasts that annual sales of modular data center systems and micro data centers could reach $48 billion by 2030, reflecting the industry’s push for faster, more standardized deployment models.

Energy availability and sustainability emerge as some of the most complex challenges facing the sector. Grid connection delays exceeding four years in core markets have led some jurisdictions, including Dublin and parts of Texas, to effectively adopt “bring your own power” requirements. In response, operators are exploring direct investment in generation assets, ranging from natural gas plants in the United States to renewable energy projects supported by private wire transmission in Europe. JLL notes that combining renewables with private grid connections could reduce tenant power costs in EMEA by as much as 40%.

Battery energy storage systems are also gaining prominence as tools to manage outages, support grid stability, and accelerate interconnection timelines. By 2030, solar-plus-storage solutions are expected to form a central pillar of data center energy strategies worldwide, particularly as renewable energy costs continue to fall relative to fossil fuels. While nuclear power is receiving renewed attention for its reliability and low carbon footprint, JLL cautions that meaningful new nuclear capacity is unlikely to be widely available before the 2030s.

The report also highlights a maturing capital markets environment. Core investment strategies now account for roughly 24% of fundraising activity, up from less than 10% in earlier cycles, signaling greater institutional participation. Since 2020, global data center mergers and acquisitions have exceeded $300 billion, though JLL expects future capital deployment to increasingly favor joint ventures and recapitalizations over outright acquisitions. Asset-backed securities and commercial mortgage-backed securities are emerging as significant funding mechanisms, with issuance volumes projected to reach $50 billion in 2026.

Taken together, JLL’s outlook paints a picture of an industry undergoing structural transformation rather than speculative overheating. AI is redefining not only how data centers are used, but how they are financed, powered, and integrated into national economic strategies. For operators, investors, and customers alike, the coming decade is likely to be defined by scale, efficiency, and the ability to navigate an increasingly complex intersection of technology, energy, and capital.

Executive Insights FAQ

Why is data center capacity expected to grow so rapidly?

AI workloads, cloud expansion, and digital transformation are driving unprecedented demand for compute and storage capacity worldwide.

How significant is AI’s role in future data center demand?

 AI is projected to consume around 50% of global data center capacity by 2030, up from roughly 25% today.

Does JLL see signs of a data center bubble?

No. High occupancy rates and strong pre-leasing levels suggest market fundamentals remain solid.

What are the biggest constraints on new development?

Power availability, grid connection delays, equipment lead times, and sustainability requirements are the primary challenges.

How are energy strategies evolving for data centers?

Operators are increasingly investing in renewables, storage, and on-site generation to mitigate grid constraints and control costs.