CBRE's data center business continues to show robust performance, with a notable 16% revenue increase in the second quarter. This growth reflects a persistent global imbalance between data center demand and supply, which is driving up rental rates and construction costs. Despite increasing new supply in various regions, the fundamental gap between demand and available capacity remains a critical market driver, necessitating strategic approaches to meet future needs.
In the US, the focus has shifted to overcoming supply delivery bottlenecks, exacerbated by unprecedented AI-driven demand. This has resulted in historic low vacancy rates, prompting CBRE to prioritize securing entitled land with existing power infrastructure. This strategic shift aims to mitigate delays associated with utility connections and complex permitting processes, moving the operational focus from demand growth to efficient execution and delivery.
Globally, CBRE observes that while hyperscaler self-builds may outpace colocation supply growth in Europe, overall absorption in 2025 could be weaker than initially projected. This suggests a potential moderation in absorption rates despite significant capacity build-out. Consequently, CBRE's perspective increasingly highlights infrastructure enablement as the key determinant for future sector capacity, particularly within the US market, underscoring the importance of power and land availability.
Last updated August 9, 2026
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