Cbre

CBRE's analysis highlights persistent supply constraints in the US data center market, driven by unprecedented AI-driven demand that has pushed vacancy rates to historic lows. The primary challenge has shifted from demand growth to the critical bottleneck of delivery timelines. Overcoming physical and regulatory hurdles to enable new capacity is now the central focus for market performance and future expansion.

The firm now emphasizes securing entitled land with existing power infrastructure as crucial for successful expansion, addressing delays from utility connections and complex permitting. This strategic pivot acknowledges that operational readiness, rather than broad demand observation, dictates future sector capacity. CBRE's focus has sharpened from diagnosing demand to pinpointing granular execution risks limiting new supply delivery.

In Europe, CBRE projects hyperscaler self-build capacity growth will outpace colocation supply expansion, though overall absorption in 2025 may be weaker than anticipated. This introduces a nuance regarding absorption rates despite strong underlying capacity build-out trends. CBRE's evolving position solidifies around infrastructure enablement as the key determinant moving toward 2026, particularly in the US, where rapid connection of ready capacity is paramount.

Last updated May 24, 2026