Global data centre capacity is expected to double in size by 2030 (Photo: Shutterstock)
For decades, real estate fundamentals have revolved around a familiar hierarchy: location, land availability and cost. But in the global data centre market, that hierarchy has shifted. According to JLL’s 2026 Global Data Centre Outlook, the primary factor that determines whether a data centre project moves forward today is no longer land or capital — it is access to power.
The report reveals that while demand for data centre space continues to surge globally, the ability to secure reliable, scalable and compliant energy has become the defining constraint shaping development outcomes. As cloud computing and AI drive unprecedented expansion, energy infrastructure — rather than real estate fundamentals alone — is now setting the pace of growth.
This shift is fundamentally reshaping data-centre real estate across regions, including the Asia Pacific (Apac), influencing where assets are built, how they are valued and which markets attract global capital.
Read also: JLL names Selina Short CEO for Australia, New Zealand
The scale of growth confronting the data centre sector is immense. JLL’s report projects that global data-centre capacity will expand by 97GW between 2026 and 2030, effectively doubling in size over just five years. By 2030, total global capacity could reach 200GW, growing at a 14% CAGR. In Apac, data centre capacity is estimated to expand from 32GW to 57GW by 2030, reflecting a CAGR of 12%.
Chart: JLL
This growth is being driven primarily by hyperscale cloud providers and the rapid scaling of AI workloads, both of which demand high-density compute environments delivered at speed. Yet, despite the scale of new supply planned, JLL’s report expects global vacancy to remain below 10%, as demand continues to absorb capacity almost as quickly as it is delivered.
One reason for this is the long lead-times required for data centres, which often get compounded by equipment and material shortages. According to JLL, 57% of data centre projects globally experienced a construction delay of at least three months in 2025. In addition, the sector’s rapid expansion has led to equipment lead-times rising 50% compared to pre-2020 levels.
These factors have led to rising data-centre construction costs. Between 2020 and 2025, average global data-centre construction costs increased from US$7.7 million ($9.77 million) to US$10.7 million per MW, representing a 7% CAGR.
However, energy constraints have emerged as an even bigger challenge for developers, with insufficient grid capacity and prolonged interconnection timelines frequently delaying projects. The average wait time in primary data centre markets currently exceeds four years, though this can vary widely across markets.
Chart: JLL
Consequently, “speed to power”, which refers to how fast a new data centre can secure electric power, has become the critical factor determining a data centre project’s success, JLL’s report states. It has also become the primary criterion driving site selection, overshadowing location and cost.
Read also: Singapore ranks second globally for real estate resilience: WiredScore
The supply bottlenecks brought on by power constraints and other factors, coupled with surging demand, are expected to support rents for data centres. Globally, JLL’s report forecasts data-centre lease rates to increase at a 5% CAGR through 2030.
The impact is most pronounced in the US, which accounts for around 50% of global capacity. Severe power shortages and near-zero vacancy in several US markets are expected to support the 7% CAGR projected for the Americas — potentially higher if constraints worsen.
Chart: JLL
In Apac, rental growth is forecast at a more moderate 4% CAGR, reflecting a structural shift rather than weaker demand. According to the report, occupiers are increasingly moving workloads away from highly constrained, high-cost markets towards emerging hubs where power availability and development economics are more favourable.
To navigate grid delays, data centre operators are increasingly integrating behind-the-meter power solutions directly into their developments. What was once a contingency strategy is now becoming a core design requirement.
JLL’s report highlights the growing deployment of battery energy storage systems (Bess) to manage AI-driven load spikes, handle short-duration outages and accelerate grid interconnection timelines. The financial viability of such systems is rapidly improving, with global Bess prices expected to fall below US$90 per kw-hour by 2026.
Chart: JLL
In Apac and Emea (Europe, Middle East, and Africa), where natural gas plays a smaller role, renewables such as solar and wind are gaining traction. In some European markets, projects combining renewables with private wire transmission can reduce power costs for tenants by up to 40% compared to grid electricity — a model that could increasingly influence Apac site selection as sustainability regulations tighten.
Read also: AI-related infrastructure among top targets for institutional investors: Nuveen
That said, energy scarcity is not purely a supply issue — it is also a regulatory one. From 2026, data centres will face heightened scrutiny over energy sourcing, as mandatory renewable procurement and environmental, social and governance reporting requirements expand globally.
JLL’s report notes that developers may need to reassess siting criteria entirely, prioritising access to compliant energy mixes to avoid regulatory and reputational risk. For Apac markets, where solar capacity is projected to expand rapidly — particularly in China — this presents both opportunity and complexity, given near-term price volatility and policy-driven supply dynamics.
The global data centre boom is no longer just constrained by demand, land or capital. Instead, power has become the primary constraint. As AI-driven workloads continue to scale, the competitive advantage in data-centre real estate will belong to developers and investors who can secure energy quickly, sustainably and at scale. In Apac and beyond, power-ready sites — not just well-located land — will define the next generation of winners in this infrastructure-led real estate cycle.
For more news and analysis, read our weekly e-paper. Prefer a print copy? Get it delivered to your home every Monday.