As the global economy continues to rapidly adopt Artificial Intelligence (AI), infrastructure to support these systems must keep pace. Consumers and businesses are expected to generate twice as much data in the next five years as all the data created over the past 10 years. This growth presents both an opportunity and a challenge for real estate investors, developers and operators. JLL’s (NYSE: JLL) Data Centers 2024 Global Outlook explores how data centers need to be designed, operated and sourced to meet the evolving needs of the global economy.
With the growing demands of AI, data center storage capacity is expected to grow from 10.1 zettabytes (ZB) in 2023 to 21.0 ZB in 2027, for a five-year compound annual growth rate of 18.5%[1]. Not only will this increased storage generate a need for more data centers, but generative AI’s greater energy requirements – ranging from 300 to 500+ megawatts – will also require more energy efficient designs and locations. The need for more power will require data center operators to increase efficiency and work with local governments to find sustainable energy sources to support data center needs.
“As the data centre industry grapples with power challenges and the urgent need for sustainable energy, strategic site selection becomes paramount in ensuring operational scalability and meeting environmental goals,” said Jonathan Kinsey, EMEA Lead and Global Chair, Data Centre Solutions, JLL. “In many cases, existing grid infrastructure will struggle to support the global shift to electrification and the expansion of critical digital infrastructure, making it increasingly important for real estate professionals and developers to work hand in hand with partners to secure adequate future power.”