Surging Demand for Data Infrastructure Fuels Real Estate Transformation Across Global Data Center Markets
Global data center markets are experiencing significant growth driven by the expanding needs of cloud computing and AI workloads. According to Cushman & Wakefield’s 2025 Global Data Center Market Comparison report, power access, land acquisition, and infrastructure have become critical factors influencing where data centers are developed.
The report covers 97 markets worldwide, revealing that total data center capacity in the Americas, EMEA, and APAC regions is expected to at least double due to ongoing development pipelines. Artificial intelligence (AI) and machine learning (ML) continue to push demand higher, sustaining the expansion trend into 2025 and 2026.
Key Trends Shaping Data Center Real Estate
- Land Demand and Suburban Shift: Larger, phased campus developments are steering data center projects away from urban centers toward suburban and rural locations. Markets such as Virginia, Phoenix, and Sydney stand out for land availability, supporting scalability and power integration needs.
- Record Pipeline Growth: The Americas lead in planned capacity, with Virginia alone holding 15.4GW in its development pipeline. Rising land values in mature markets encourage interest in cost-effective emerging locations like Johor and Pennsylvania.
- Powered Land as a Premium Asset: Land parcels with pre-secured utility commitments are highly sought after. Developers and non-traditional buyers, including electric vehicle and chip manufacturers, compete for these sites due to guaranteed power access amid rising constraints and long lead times.
- Investment Surges Across Real Estate Spectrum: Institutional investment is increasing, with more joint ventures, mergers, and acquisitions in colocation, hyperscale, and infrastructure sectors. Both established and emerging markets attract capital, pushing rapid pipeline growth.
- Land Pricing and Competition Intensify: While the Americas generally offer lower land costs, competition in top-tier markets drives prices up. Affordable Midwestern U.S. markets such as Indianapolis and Iowa benefit from spillover demand.
Market Rankings for Established Data Center Locations
Power availability and pipeline capacity remain key indicators for top markets worldwide. Cushman & Wakefield’s report evaluates 20 critical variables relevant to hyperscale and colocation operators, developers, and occupiers.
- Americas: Virginia, Phoenix, Dallas, Atlanta, Oregon, Columbus, Salt Lake City, Chicago, Carolinas, Sao Paulo
- APAC: Beijing, Shanghai, Sydney, Johor, Melbourne, Guangzhou, Mumbai, Osaka, Seoul, Singapore
- EMEA: London, Frankfurt, Amsterdam, Paris, Madrid, Milan, Stockholm, Dublin, Brussels, Johannesburg
Emerging Markets to Watch
- Americas: Austin/San Antonio, Iowa, Pennsylvania, Reno, Minneapolis, Kansas City, Nashville, Indianapolis, Central Washington, Santiago
- APAC: Auckland, Brisbane, Busan, Pune, Bengaluru, Perth, Canberra, Taipei, Batam, Hanoi
- EMEA: Abu Dhabi, Dubai, Berlin, Helsinki, Zurich, Munich, Oslo, Warsaw, Reykjavik, Tel Aviv
Mature markets like Virginia, Beijing, and London remain dominant, but rising land costs and regulatory challenges are creating opportunities for emerging regions. These new markets offer access to scalable land, reliable power infrastructure, and favorable economics that appeal to developers and investors.
The data center sector continues to be one of the fastest-growing real estate asset classes globally, driven by a combination of technology demands and strategic investment.
For professionals in real estate and construction, understanding these shifts is essential for aligning development strategies with market needs and identifying promising locations.
To explore the full findings and detailed market comparisons, visit the Cushman & Wakefield report.
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