CBRE continues to focus intensely on the US data center market's supply constraints, where AI-driven demand has driven vacancy to historic lows. The primary bottleneck has decisively shifted to delivery timelines, superseding earlier growth concerns. This evolution underscores that overcoming physical and regulatory hurdles to enable new capacity is now the central challenge for market performance.
The firm's analysis now emphasizes securing entitled land already equipped with necessary power infrastructure as crucial for expansion success. This strategic pivot addresses friction points caused by utility delays and complex permitting processes, confirming that operational readiness dictates future sector capacity. CBRE's focus has sharpened from broad demand observation to granular execution risks.
In Europe, CBRE projections indicate that hyperscaler self-build capacity growth is expected to outpace colocation supply expansion. However, this is tempered by an anticipation that overall supply absorption across the continent in 2025 may be weaker than previously expected. 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. The narrative has moved from diagnosing robust demand to pinpointing the precise execution risks limiting new supply delivery. The market dynamic is now defined by the ability to rapidly connect ready capacity to meet accelerating requirements.
Last updated March 1, 2026
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