Cbre

CBRE's analysis indicates that global data center demand continues to significantly outpace supply, a trend that is driving up both rental rates and construction costs. Despite ongoing growth in new supply across various regions, the fundamental imbalance persists. This persistent demand pressure is a key factor shaping the market, necessitating strategic responses to accommodate future needs and manage escalating expenses.

In the US, the focus has shifted from demand growth to overcoming critical supply delivery bottlenecks. Unprecedented AI-driven demand has led to historic low vacancy rates, making the ability to bring new capacity online the primary challenge. CBRE emphasizes securing entitled land with existing power infrastructure to mitigate delays caused by utility connections and complex permitting processes.

Globally, CBRE projects that while hyperscaler self-builds may grow faster than colocation supply in Europe, overall absorption in 2025 could be weaker than initially anticipated. This introduces a nuance to absorption rates despite strong underlying capacity build-out. The firm's evolving position highlights infrastructure enablement as the key determinant for future sector capacity, particularly in the US, where rapid connection of ready capacity is paramount.

Last updated June 28, 2026