CHICAGO — As artificial intelligence (AI), machine learning (ML), and cloud computing fuel an unprecedented demand for digital infrastructure, data centers are becoming one of the world’s fastest-growing real estate asset classes, according to Cushman & Wakefield’s newly released 2025 Global Data Center Market Comparison report.
Analyzing 97 global markets, the report identifies key shifts in how and where data centers are being built, with power access, land availability, and infrastructure scalability emerging as the most critical factors influencing development.
“We expect total capacity to continue its incredible growth trajectory across all global regions, with each expected to at least double based on the current development pipelines,” said John McWilliams, Head of Data Center Insights at Cushman & Wakefield.
Power, Land, and Location Now Drive Market Dominance
According to the report, land with guaranteed utility access is now considered the gold standard. As data center projects become more power-intensive, land with pre-secured electrical capacity is being fiercely contested not only by data center developers but also by EV manufacturers and semiconductor firms.
Cushman & Wakefield highlights that record development pipelines are fueling demand, especially in North America. The Americas lead globally, with Virginia alone accounting for a staggering 15.4 GW of planned capacity — the highest in the world. Other leading markets include Phoenix, Dallas, and Atlanta, reflecting a broader shift toward suburban and rural locations where land is more abundant and power integration is more feasible.
“Larger site acquisitions for phased campus developments are becoming the norm, pushing data center projects away from urban cores,” the report notes.
Established and Emerging Markets: A Tale of Two Tiers
The report ranks Virginia, Beijing, and London as the top-performing established markets in the Americas, APAC, and EMEA, respectively. These hubs benefit from mature infrastructure and strong connectivity, even as they face rising land costs and power constraints.
Simultaneously, emerging markets are gaining momentum. Austin/San Antonio (U.S.), Auckland (New Zealand), and Abu Dhabi (UAE) top the list of emerging data center hotspots due to affordable land, scalable infrastructure, and favorable economic environments. In the U.S., Iowa, Pennsylvania, and Indianapolis are attracting growing interest as more cost-effective alternatives to pricier regions.
“The next frontier isn’t just about connectivity, it’s about access to scalable land, power infrastructure, and favorable economics,” McWilliams explained.
Investment and Competition Heat Up
Institutional capital is flowing into the sector at record levels. According to Cushman & Wakefield, joint ventures, mergers, and acquisitions are on the rise across colocation, hyperscale, and infrastructure segments, with investors increasingly targeting both mature and up-and-coming markets.
Although land costs in the Americas remain generally lower, rising competition has driven up pricing in major hubs. Meanwhile, Midwestern cities like Indianapolis and Iowa remain comparatively affordable, luring spillover demand from more saturated metros.
Top 3 Established Data Center Markets by Region
Americas
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Virginia
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Phoenix
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Dallas
Asia-Pacific (APAC)
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Beijing
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Shanghai
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Sydney
Europe, Middle East & Africa (EMEA)
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London
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Frankfurt
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Amsterdam
Top 3 Emerging Data Center Markets by Region
Americas
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Austin/San Antonio
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Iowa
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Pennsylvania
APAC
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Auckland
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Brisbane
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Busan
EMEA
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Abu Dhabi
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Dubai
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Berlin
As cloud computing and AI continue to reshape global digital infrastructure, the Cushman & Wakefield report emphasizes that data center development is no longer limited to traditional tech hubs. Instead, the competition is shifting toward regions that offer land scalability, power reliability, and cost efficiency—key ingredients for the next generation of digital ecosystems.
To view the full Cushman & Wakefield 2025 Global Data Center Market Comparison report, visit: cushmanwakefield.com
