The global data center sector is set for another wave of unprecedented growth, with capacity expected to nearly double by the end of the decade, according to JLL’s newly released 2026 Global Data Center Outlook.
In its report, JLL predicts that global data center capacity will climb from 103 gigawatts today to about 200 gigawatts by 2030, fueled largely by the rapid expansion of artificial intelligence workloads.
In little surprise, the growth of AI is playing a major role in data center growth. JLL projects that AI-related workloads will account for roughly half of all global data center capacity by 2030, up from about a quarter in 2025. Even with that rapid growth, JLL says the sector’s fundamentals remain strong, with property metrics showing no signs of a speculative bubble.
This expansion will require a massive amount of capital. JLL estimates that as much as $3 trillion in total investment will be needed over the next five years to support data center demand, including $1.2 trillion in real estate asset value creation and roughly $870 billion in new debt financing. The scale of spending marks what the firm describes as 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 for data centers and critical environments at JLL, in a statement. “The sheer scale of demand is extraordinary.”
JLL expects a key turning point to arrive in 2027, when AI inference workloads are projected to overtake training workloads as the dominant driver of demand. AI training facilities already require higher power densities than traditional data centers and are commanding significant lease-rate premiums.
“We’re witnessing the emergence of an entirely new infrastructure paradigm,” said Andrew Batson, global head of data center research at JLL, in a statement.
Batson said that AI’s strategic importance is prompting countries to invest in domestic data center capacity, creating a multibillion-dollar opportunity.
JLL said that the Americas are expected to maintain their position as the world’s largest data center market, representing about half of global capacity and achieving the fastest growth rate through 2030. The Asia-Pacific region is projected to expand from 32 gigawatts to 57 gigawatts, while Europe, the Middle East and Africa are expected to add 13 gigawatts of new supply.
In the Americas, the United States continues to dominate, accounting for roughly 90% of regional capacity. Developers are increasingly favoring large-scale, phased projects designed for single-tenant hyperscale users, a shift driven by the urgency of securing power rather than traditional location considerations.
Despite the construction surge, market fundamentals remain tight. JLL reports global occupancy at 97%, with 77% of the current construction pipeline already pre-leased. Global lease rates are forecast to rise at a compound annual growth rate of 5% through 2030, led by the Americas, where annual growth is expected to reach 7%.
The pace of development has strained supply chains. More than half of projects in 2025 experienced construction delays of three months or more, while average equipment lead times have increased to 33 weeks globally. In response, developers are increasingly turning to modular construction and micro data center solutions.
Energy availability remains one of the sector’s biggest challenges. Grid connection delays now exceed four years in many primary markets, prompting some operators to fund their own power generation. In the U.S., natural gas is expected to play a growing role, both as temporary bridge power and as permanent on-site generation, while renewable energy remains central to long-term strategies.
Capital markets are also evolving alongside the sector. Core investment strategies now represent nearly a quarter of fundraising activity, and global M&A activity has surpassed $300 billion since 2020. Financing structures are becoming more sophisticated as investors adapt to the scale and complexity of AI-driven data center projects, JLL said.
“The rapid emergence of AI and neocloud deals at scale has defined 2025 as a transformative year,” said Carl Beardsley, U.S. data center leader for JLL Capital Markets, in a statement. “These projects demand innovative financing approaches that balance growth potential with risk mitigation.”
