Global data centres will be actively developing until 2027
Knight Frank has published a report on the latest trends in the global property market. One of the most promising sectors is data processing centres. Experts have recorded a sharp increase in interest in digital infrastructure facilities around the world. This trend is expected to continue over the next few years.
According to the forecast, by 2027, the capacity of data centres will increase by 46%, reaching an increase of 20,828 MW. Experts highlight the sector’s rapid growth. If current rates are maintained, growth will reach 177% by 2030, requiring capital investment of £229 billion. Analysts cite the following as the key drivers of growth in the sector:
– strong demand for digital infrastructure;
– increasing demand for capacity to service AI needs;
– the widespread adoption of cloud computing;
– digital transformation of business.
The data centre market has shown signs of recovery in 2024. Compared to 2023, transaction volumes grew by 118% to £24.5 billion. This was achieved through individual asset acquisitions and portfolio purchases. Sales of sites for the construction and refurbishment of existing facilities also made a significant contribution.
Last year, the average transaction value in the sector was £59 million. This represents a 15% increase on the 2023 figure.
Data centres regional performance
North America remains the market leader. Analysts forecast that the sector will reach the following figures by 2027:
– a total of 11,638 MW of new capacity will be commissioned.
– a growth rate of 54%;
– the sector will receive £128 billion of investment.
A key strength of the region is the high demand for data centres within the domestic market. This is fuelled by the growing demand for corporate colocation. Additionally, major players in the sector are actively entering secondary markets.
The EMEA region is expected to add 4,529 MW of capacity (+44%). To achieve this, the sector requires an investment of £49.8 billion. Market trends differ from country to country. For example, Europe is increasingly focused on secondary centres such as Milan and Madrid. This shift is due to the lack of capacity in prime locations such as London and Frankfurt.
The Asia-Pacific region will add 4,174 MW of capacity (an increase of 32%), requiring investment of around £46 billion. The region is developing both established centres, such as Tokyo, and promising new destinations, such as Johor in Malaysia. The latter is of interest to industry giants that are expanding their operations.
Analysts also note increased competition among major players in the sector. They are trying to find high-end sites for new centres more quickly than their competitors.