Synthetic intelligence functions are quickly increasing throughout industries, and the worldwide knowledge middle business performs a vital position in AI adoption and development. To fulfill the exponential knowledge middle demand, the sector will develop at an exceptional tempo in 2025. JLL’s 2025 International Information Middle Outlook explores how AI isn’t solely driving demand however the improvement of extra highly effective and environment friendly knowledge middle infrastructure that balances computing energy and sustainability.
Throughout the hyperscale and colocation segments, an estimated 10 GW is projected to interrupt floor globally in 2025, whereas 7 GW will probably attain completion. Based mostly on this present tempo of below building and deliberate developments, the worldwide knowledge middle market will probably increase at a baseline 15% CAGR by way of 2027 – with the potential to succeed in 20%. Fast enlargement brings challenges, together with demand outstripping provide and electrical energy improvement constraints in some markets. The business additionally faces quite a few alternatives such because the immergence of latest applied sciences offering novel pathways for sustainability.
“The tempo of AI innovation isn’t slowing down, and the info middle business should proceed to adapt,” mentioned Jonathan Kinsey, JLL EMEA Lead and International Chair, Information Centre Options. “AI’s transformative energy calls for have already reshaped our world, but its most important and enduring impact might lie in how we rise to satisfy the substantial vitality calls for required to gasoline this technological revolution. The outcomes will essentially reshape knowledge middle design and operation.”
Subsequent-generation AI requires larger rack density and superior cooling expertise
On the core of the AI revolution is the speedy development in semi-conductor expertise. Over the previous two years, GPUs have turn into considerably extra highly effective, resulting in larger rack densities starting from 40 kW to 130 kW per rack, with future chips projected to succeed in an astounding 250 kW per rack.
GPU innovation presents a big hurdle: managing the warmth generated by densely packed, energy-intensive GPUs. The need to maintain this tech cooled and cargo variability steady, mixed with new energy utilization effectiveness (PUE) laws, will shift thermal administration methods towards liquid cooling as the usual for brand new knowledge middle developments. Sooner or later, immersion cooling will turn into a standard resolution as GPUs surge previous 150 kW.
Most new knowledge facilities are being designed to accommodate a mixture of each AI and conventional workloads. Although a big driver, even optimistic adoption situations counsel that AI will characterize lower than 50% of information middle demand in 2030, with conventional, lower-intensity workloads like knowledge storage and cloud-based functions comprising many of the demand.
“Whereas not each knowledge middle is or shall be a specialised AI facility, all knowledge facilities – new and current – can profit from extra vitality environment friendly operations and improved expertise integration,” mentioned Andrew Inexperienced, JLL Regional Information Middle Follow Lead, Asia Pacific. “Information middle operators should deal with the demand for enormous energy wants whereas satisfying the necessity for extra vitality environment friendly services. AI is remodeling knowledge middle administration by way of predictive upkeep functions, which optimize vitality utilization, result in longer lifespans for tools and lead to much less down time.”
Builders search different vitality options amid energy transmission bottlenecks
Forecasts counsel that world knowledge middle vitality demand may double over the following 5 years. Whereas knowledge facilities eat massive portions of energy, they’re one part of the complicated world energy problem. Moreover, knowledge facilities are anticipated to characterize solely about 2% of world electrical energy consumption in 2025. A wide range of different elements like rising EV adoption, equipment electrification and rising energy consumption in growing nations additionally contribute to rising energy demand.
Since knowledge facilities are sometimes clustered collectively in metropolitan areas, important bottlenecks in delivering energy to new developments persist in a number of the largest world knowledge middle markets like Northern Virginia, Tokyo and London. Moreover, these clusters are inconsistently distributed throughout the globe, leading to some nations and areas the place knowledge facilities account for a substantial proportion of complete electrical energy demand.
“Information middle builders consider markets primarily based on the supply of some key facets, together with energy, land, connectivity and tax incentives,” mentioned Andy Cvengros, JLL Co-Lead U.S. Information Middle Markets. “Shortage is just half of the ability story; transmission is the opposite half. The time it takes to erect transmission traces and substations to attach new knowledge facilities to the grid could be as much as 4 years or extra in some markets. Each established and rising markets will see larger improvement ranges in 2025, together with extra builders exploring different vitality options like pure gasoline and gasoline cells.”
Being checked out as carbon impartial, large-scale nuclear energy is rising as a most well-liked different to conventional energy, significantly for AI and high-performance computing functions. Corporations worldwide are growing small modular reactors (SMRs), which, whereas nonetheless within the early phases, may supply a modular and scalable inexperienced vitality energy supply at a fraction of the price of large-scale nuclear. Although industrial deployment within the U.S. is unlikely till 2030 for quite a lot of causes detailed within the report, JLL anticipates extra SMR bulletins this yr.
Building pipeline to result in report financing for knowledge middle improvement
Investor urge for food for knowledge facilities will stay sturdy by way of 2025 on account of demand for compute energy and knowledge storage, low provide on account of energy shortage, engaging returns and rising pleasure round AI’s potential. JLL anticipates knowledge middle improvement financing could have one other report yr in 2025, whereas world knowledge middle buying and selling quantity is more likely to reasonably enhance in 2025.
“Information middle exercise has exploded over the previous few years, with a lot of the demand geared towards single-tenant ground-up building,” mentioned Carl Beardsley, U.S. Information Middle Chief, JLL Capital Markets. “Important obstacles to entry exist for brand new buyers primarily based on the quantity of capital required in addition to an extended improvement cycle. In 2025, we anticipate many alternatives for core buyers to recapitalize the single-tenant knowledge facilities that proceed to be constructed.”
M&A funding quantity and megamergers will probably sluggish, however JLL expects a rise in joint ventures in 2025, significantly in growing nations as business corporations companion with regional teams to assist navigate the native political, regulatory and enterprise landscapes.
Regardless of challenges, together with provide constraints and electrical energy limitations in some markets, the outlook for the info middle sector stays extremely favorable. The business is poised for continued progress, pushed by AI adoption, elevated knowledge processing calls for and ongoing technological developments.
