Cloud computing and AI are driving the exponential growth of the data centre industry, according to JLL’s latest Global Data Centre Outlook.
The report found ‘hyperscalers’ – predominantly global cloud service providers – and ‘edge’ data centres – smaller facilities located in close proximity to the populations and infrastructure they serve – are the fastest growing segments of the market, accounting for 79% of overall demand.
The hyperscale market is expected to grow by 20% from 2021 to 2026, as major tech companies attempt to meet surging demand for data processing and storage requirements. Five years ago there were just 500 hyperscale sites globally, but today 314 new sites are in development and the total number of hyperscale sites is expected to surpass 1,000 by the end of next year.
Data centre uptake in Europe grew 35% to 296MW last year in FLAP-D [Frankfurt, London, Amsterdam, Paris and Dublin] markets. Frankfurt saw the strongest growth with an 18% increase in supply.
Tom Glover, head of data centre transactions EMEA at JLL, said: “2022 was a record year for take up and new data centre supply added to the European market. We saw 300MW of new supply added to the tier one markets – a 50% increase year-on-year, contributing to the market size of FLAP-D to reach 2,477MW, almost double in size from the end of 2016. As the reliance on digital technology increases, the data centre industry will continue to experience impressive growth.”
As demand for digital infrastructure surges globally, sustainability has become a top priority for data centre developers, operators and investors, according to Jonathan Kinsey, head of data centre services EMEA at JLL.
“With corporations and governments alike focusing on ramping up efforts to close the gap between environmental commitments and action in the race to net-zero, the data centre industry is also facing increased pressure for more transparency of climate mitigation efforts and has been working towards more sustainable operations,” said Kinsey.
“Those who react the fastest and improve efficiency with both energy and water usage stand to benefit as environmental impacts remain top-of-mind for most leading companies.”
