Kristen Vosmaer is the managing director of Data Center Work Dynamics at JLL. According to their recently released “2025 Global Data Outlook,” the data center market is expected to experience a compound annual growth rate (CAGR) of 15% through 2027, with potential for even higher growth at a CAGR of 20%. This rapid expansion has been anticipated but there have been uncertainties regarding timing and technology.
The report highlights factors such as increasing usage of artificial intelligence and powerful graphics processing units driving demand for data centers. However, concerns about power grids and electricity consumption remain, with data centers projected to only account for about 2% of global electricity usage in 2025. As demand for electricity increases across multiple industries, solutions need to be found in order to avoid delays in development due to power transmission challenges.
Investor interest in data centers remains strong and development financing is expected reach record levels next year. Carl Beardsley from JLL’s Capital Markets division notes that while historically there were few lenders involved in large construction deals, more are now seeking exposure due technical complexities and deal sizes associated with this sector.
Cooling technologies also present challenges as overheating can cause disruptions or damage equipment within a facility. The industry has seen innovations such as energy-efficient chip architectures and advanced liquid cooling systems emerge as solutions. While air-cooled technology will continue being used alongside these new developments, facilities must adapt their operations strategies accordingly.
Overall, the future looks bright for the expanding commercial real estate sector that is data centers according Kristen Vosmaer who believes that despite some unknowns surrounding technology advancements like small modular reactors (SMRs), they offer attractive green options which could help solve broader infrastructure issues facing this rapidly growing industry.
