JLL predicts record data centre investment in 2025
The worldwide data centre market is set to attract its highest ever development financing inflows this year, according to JLL.
The consultancy’s 2025 Global Data Centre Outlook report has tracked 10 gigawatts of new data centre capacity scheduled to break ground globally this year, with 7GW reaching completion, equating to $170bn ($140bn) in asset value.
Development is being driven by the AI revolution, with explosive growth presenting both challenges and opportunities for investors, said JLL. Challenges include supply constraints and electricity limitations in some markets.
The worldwide data centre market is set to attract its highest ever development financing inflows this year, according to JLL.
The consultancy’s 2025 Global Data Centre Outlook report has tracked 10 gigawatts of new data centre capacity scheduled to break ground globally this year, with 7GW reaching completion, equating to $170bn ($140bn) in asset value.
Development is being driven by the AI revolution, with explosive growth presenting both challenges and opportunities for investors, said JLL. Challenges include supply constraints and electricity limitations in some markets.
Andrew Green, regional data centre practice lead for Asia Pacific at JLL, said: “All data centres – new and existing – can benefit from more energy efficient operations and improved technology integration.
“Data centre operators must contend with the demand for massive power needs while satisfying the need for more energy efficient facilities.”
JLL has also named clustering among the challenges associated with data centre development, especially in markets such as Northern Virginia, Tokyo and London. Most of the facilities in these markets sit close to each other in metropolitan areas, limiting the delivery of power to new developments outside of clusters.
Andy Cvengros, co-lead for US data centre markets at JLL, said: “Scarcity is only half of the power story; transmission is the other part. The time it takes to erect transmission lines and substations to connect new data centres to the grid can be up to four years or more in some markets.”
Nevertheless, data centre investment and development are set to pick up the pace going forward, said JLL, thanks to supply/demand imbalance, which offers attractive returns. The firm predicted an increase in joint ventures in 2025, particularly across developing countries, whereas acquisition volumes and mega-mergers are likely to slow.
Carl Beardsley, US data centre leader at JLL capital markets, said: “Data centre activity has exploded over the last few years, with much of the demand geared toward single-tenant, ground-up construction.
“Significant barriers to entry exist for new investors based on the amount of capital required as well as a longer development cycle. In 2025, we expect many opportunities for core investors to recapitalise the single-tenant data centres that continue to be built.”
Photo by Panumas Nikhomkhai/Pexels
