AI Surge Drives Massive Data Center Expansion in 2025
News Content:
The rapid growth of artificial intelligence (AI) across industries is fueling a significant increase in global data center demand, according to JLL’s 2025 Global Data Center Outlook. This surge is pushing the data center industry to expand at an unprecedented rate to support AI’s rising power needs.
Data Center Expansion
In 2025, hyperscale and colocation data centers are expected to develop around 10 GW globally, with 7 GW projected for completion. The industry’s growth is anticipated to continue at a 15% CAGR through 2027, with potential peaks at 20%. However, challenges like supply shortages and energy constraints could arise.
Technological Advancements
The evolution of GPUs has led to higher rack densities, necessitating advanced cooling solutions like liquid and immersion cooling to manage the increased heat. Although AI drives much of the demand, traditional data center workloads will still account for a significant portion.
Energy Solutions
As global data center energy needs are set to double in five years, alternative energy solutions, including natural gas, fuel cells, and small modular reactors (SMRs), are being explored to mitigate power supply issues in key markets
Investment Outlook
Investor interest in data centers remains strong, with 2025 projected to be another record year for financing, driven by AI excitement and the need for more computing power.
Despite hurdles, the future of data centers looks bright, powered by ongoing AI adoption and innovation in energy and technology.
