Global Surge in Data Infrastructure Demand Reshapes Real Estate
Data centers have emerged as one of the fastest-growing real estate asset classes worldwide. The latest 2025 Global Data Center Market Comparison report from Cushman & Wakefield highlights how AI, machine learning, and cloud computing are driving this surge. The report covers 97 global markets, focusing on how power availability, land access, and infrastructure scalability are redefining where and how data centers are developed.
John McWilliams, Head of Data Center Insights at Cushman & Wakefield, states that total data center capacity is expected to at least double across all global regions based on current development pipelines.
Power, Land, and Location: Key Drivers of Growth
Land with guaranteed utility access has become a critical asset. Data center projects now demand higher power, leading to fierce competition for sites with pre-secured electrical capacity. This competition extends beyond data centers to sectors like electric vehicle manufacturing and semiconductors.
North America leads the charge, with Virginia alone accounting for 15.4 GW of planned capacity—the highest worldwide. Other major U.S. markets include Phoenix, Dallas, and Atlanta. There's a clear trend toward suburban and rural locations where larger land parcels and easier power integration support large-scale developments.
The report notes that phased campus developments on larger sites are becoming standard, pushing data centers away from expensive urban cores.
Established vs. Emerging Markets: Where Growth Is Happening
Top established markets include Virginia in the Americas, Beijing in APAC, and London in EMEA. These hubs benefit from mature infrastructure and connectivity but face rising land and power costs.
Emerging markets are gaining traction due to more affordable land, scalable infrastructure, and supportive economic conditions. In the U.S., Austin/San Antonio, Iowa, and Pennsylvania are notable for cost advantages. Similarly, Auckland in New Zealand and Abu Dhabi in the UAE are rising as new hotspots.
McWilliams explains, “The next frontier isn’t just about connectivity, it’s about access to scalable land, power infrastructure, and favorable economics.”
Investment Activity and Competitive Landscape
Institutional investment in data centers is increasing rapidly. Joint ventures, mergers, and acquisitions are common across colocation, hyperscale, and infrastructure segments. Investors are targeting both established and emerging markets.
While land costs in the Americas generally remain lower, competition has pushed prices up in major hubs. Midwestern cities like Indianapolis and Iowa offer more affordable alternatives, attracting demand from saturated metros.
Top Data Center Markets by Region
- Americas (Established): Virginia, Phoenix, Dallas
- APAC (Established): Beijing, Shanghai, Sydney
- EMEA (Established): London, Frankfurt, Amsterdam
- Americas (Emerging): Austin/San Antonio, Iowa, Pennsylvania
- APAC (Emerging): Auckland, Brisbane, Busan
- EMEA (Emerging): Abu Dhabi, Dubai, Berlin
With cloud computing and AI reshaping digital infrastructure, data center development is expanding beyond traditional tech hubs. The focus is shifting to regions offering scalable land, reliable power, and cost efficiency — crucial factors for future digital ecosystems.
For professionals interested in how AI is influencing infrastructure and real estate, exploring targeted educational resources can be valuable. Check out AI courses by job role to stay informed on relevant trends and skills.
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