JLL Forecasts $3 Trillion Data Center Investment 'Supercycle' by 2030, Dismisses Bubble Concerns
January 07, 2026
The global data center industry is poised for an unprecedented wave of investment, driven by the insatiable demand for artificial intelligence (AI) computing power. According to a new report from real estate services and investment firm JLL, this growth phase represents a fundamental "supercycle" rather than a speculative bubble, signaling a long-term structural shift in digital infrastructure.
In its 2026 Global Data Center Outlook, JLL projects that nearly 100 gigawatts (GW) of new data center capacity will be added globally by 2030, effectively doubling the world's existing footprint. This massive expansion is forecast to require approximately $3 trillion in total investment, marking what the firm describes as the largest investment supercycle in modern history. The breakdown includes an estimated $1.2 trillion in real estate asset value creation, around $870 billion in new debt financing, and between $1 trillion to $2 trillion that tenants will spend to upgrade GPU and networking infrastructure. The sector is expected to expand at a compound annual growth rate (CAGR) of 14 percent through the decade.
Despite facing significant headwinds—including supply chain delays that have pushed average equipment lead times to 33 weeks, a 50 percent increase from 2020 levels, and construction costs rising at a 7 percent CAGR—JLL argues the market fundamentals remain robust. The report states that analysis "indicates the sector maintains healthy fundamentals with 97 percent global occupancy and 77 percent of the construction pipeline pre-committed to tenants." Carl Beardsley, US data center leader for JLL Capital Markets, noted, "The rapid emergence of AI and neocloud deals at scale has defined 2025 as a transformative year." He added that financing these deals demands "innovative financing approaches that balance the growth potential of AI and neocloud technologies with appropriate risk mitigation."
The AI revolution is the central engine of this growth. JLL predicts AI workloads could constitute half of all data center capacity by 2030, with AI inferencing overtaking training as the dominant workload by 2027, redistricting demand toward more distributed regional centers. Geographically, the Americas will maintain its dominance, accounting for roughly half of global capacity, while the Asia-Pacific region is forecast to nearly double its capacity from 32GW to 57GW. The EMEA region is expected to add a more modest 13GW of new supply.
However, the report identifies critical constraints that could hamper this momentum, primarily energy generation and grid connectivity. In primary markets, grid connection lead times now exceed four years, pushing some operators to fund their own energy generation. JLL expects natural gas to play a "major role" in the U.S. as a bridge solution, though it is seen as less viable in Asia-Pacific and EMEA due to sustainability concerns. While nuclear power is noted as a potential long-term solution, significant new capacity is unlikely before 2030.
The scale of anticipated investment and the sector's maturation are also reshaping its capital markets. Core investment strategies now make up 24 percent of fundraising activity, and over $300 billion in mergers and acquisitions have occurred in the past five years, with future activity expected to shift toward recapitalization and joint ventures.
Source: datacenterdynamics
