New data centers are being built at a faster rate than any other real estate asset class globally, data from JLL’s Global Real Estate Outlook shows.

Completions are set to reach a new peak globally in 2025, exceeding the previous four years. Yet with capacity on track to grow at a 15% CAGR over the next two years, demand for critical data center infrastructure continues to outstrip supply.

Until supply catches up to demand, hyperscalers are leasing more space from colocation providers as a temporary solution to accelerate their speed to market, according to Duncan.

“This shift reflects the widening gap between demand and the availability of build-to-suit options, constrained by factors like limited land and lengthy construction timelines,” he says.

While the past few years have witnessed delays in data center developments due to supply chain disruptions and project backlogs, Thorpe is sanguine about the prospects of the global data center landscape.

“We're starting to see a resurgence in new supply and planning decisions in recent months, with projects slated for completion and commencement this year,” says Thorpe. “Furthermore, the imminent arrival of new subsea cables in development will provide the critical connectivity needed to drive the development of new data centers globally.”