Data Center Construction Boom to Persist Through 2026, Oxford Economics Reports

Data Center Construction Boom to Persist Through 2026, Oxford Economics Reports December 27, 2025 The global surge in data center construction, a critical infrastructure sector powering the digital economy, is projected to maintain its strong momentum well into 2026. This sustained growth comes despite emerging long-term challenges, highlighting the sector's resilience and continued demand driven by cloud computing, artificial intelligence, and expanding digital services. According to a recent analysis by Oxford Economics, the data center development pipeline remains robust for the coming year. The research firm's report indicates that the current building boom, which has seen record levels of investment and construction activity across key markets in North America, Europe, and Asia-Pacific, is expected to extend through 2026. This projection is based on sustained corporate and hyperscale demand for computing capacity and storage. While the report forecasts continued strength in the near term, it also cautions about longer-term risks that could eventually temper the pace of expansion. These potential headwinds include increasing regulatory scrutiny concerning energy consumption and environmental impact, supply chain constraints for critical components, and localized community opposition to large-scale projects in some regions. The analysis suggests the industry's growth trajectory may face moderation beyond 2026 as these factors gain prominence. For the commercial real estate and technology sectors, the extended construction cycle signals ongoing opportunities for developers, investors, and equipment suppliers. The persistent demand underscores data centers' evolution from niche assets to essential infrastructure, with their development now a significant driver of industrial real estate markets and regional economic planning. Source: costar