We live in a world where AI, cloud computing, and IoT devices are driving an astonishing explosion of data. Just last year, we created and consumed nearly 100 trillion gigabytes of it—yes, trillion. To put that into perspective, that’s like streaming Netflix non-stop for more than 3 billion years. Imagine a stack of 1.5 billion iPads filled with data, stretching to the moon and back over five times. And it’s only going to get more intense. By 2025, we’ll be doubling that amount, pushing our data infrastructure to its limits.
At the heart of this digital revolution are the data centres—massive facilities that store and process all that information. Across the globe, nations are racing to expand their data centres to meet skyrocketing demand, and it’s not just the usual players like the U.S. and China. New regions are jumping into the game with serious momentum.
Take India, for example. The country is undergoing a digital transformation, and as more of its population gets online, data needs are going through the roof. Big players like AWS and Google are sinking billions into cities like Mumbai and Hyderabad to keep pace. Malaysia is another hotspot, attracting investments from tech giants like Google and Tesla, who see the country’s location and business-friendly policies as a prime opportunity for hyperscale data centres. Poland is positioning itself as Europe’s data gateway, drawing in the likes of Google Cloud and Microsoft. And in the Middle East, countries like the UAE and Saudi Arabia are building some of the most advanced data infrastructure as part of their vision for tech-forward cities like Neom and Dubai’s Silicon Oasis.
The UK, too, is making serious moves. Since mid-2023, over £25 billion has poured into its data centre market, with projections suggesting the sector could be worth more than £10 billion by 2025. And while London’s always been a major hub, we’re seeing big growth in areas like the Midlands and Northumberland. Just look at Blackstone’s £10 billion project in the North East—it’s reshaping the local real estate scene in ways few could have imagined.
The Big Players in Data Centre Real Estate
It’s not just the tech companies that are riding this wave—some of the biggest names in real estate and investment are backing the boom. Heavyweights like Digital Realty, Equinix, and Blackstone Group are all in, as are global investment powerhouses like Brookfield, KKR, and GIC. These companies know that as our reliance on cloud services, AI, and edge computing grows, so too will the need for data storage and processing power.
Interestingly, data centre real estate has become one of the most sought-after assets in the property world. Developers are hunting for sites with robust power grids, easy access to fibre networks, and enough space to handle large facilities. Brownfield developments—like the one in Northumberland—are being repurposed, turning old industrial sites into new digital infrastructure hubs.
But it’s not all smooth sailing. There are big challenges ahead, particularly when it comes to energy consumption. Just look at Ireland—its data centres already consume about 19% of the country’s electricity, and that number’s set to hit 28% by 2031. Balancing this huge power demand with sustainability goals is a growing concern, especially in regions like the Middle East and Asia, where going green is becoming more than just a talking point.
A Look to the Future: AI and the Growing Demand
The future of data centres is inextricably tied to the rise of AI, especially as we move towards more advanced generative AI applications like GPT-4. Training models of this scale requires immense computing power, with costs for training GPT-4 estimated at over $100 million. This has pushed the boundaries of what data centres need to deliver. As the JLL 2024 Data Centre Outlook highlights, “Generative AI will significantly disrupt the industry, impacting not just the number of new data centres needed but also their design and location”. In fact, power requirements for AI applications are far more intense than traditional workloads, particularly for processes like model creation and tuning.
The need for more densely packed infrastructure and cooling capabilities is another challenge. According to the JLL report, “Generative AI requires more densely clustered and performance-intensive IT infrastructure,” which generates significantly more heat than typical operations, creating new complexities for maintaining efficiency. This shift will also affect how data centres select sites, with more focus on access to sustainable energy sources and climates that support energy-efficient cooling.
With AI’s growing role in our digital economy, data centres must evolve rapidly to handle these heightened demands, ensuring they can keep pace with the next wave of technological innovation.
Source: (jll-data-center-outlook…).