Research

Data Center Outlook H1 2022

Data center activity continues to swell as the world moves toward a more digital future

August 29, 2022
Contributors:
  • Amber Schiada

Key trends to watch for the second half of 2022: 

  • New data center supply will be impeded by the availability of land and power in many major markets, driving expansion outside the traditional hubs.

  • Persistent supply chain delays will continue to cause delivery challenges for the next 24 months.

  • Enterprise demand for cloud is anticipated to grow exponentially as businesses move from owned assets to either full cloud or hybrid models.

  • Sustainability will be a key focus for the sector as net zero carbon mandates proliferate across the public sector.

  • Capital will continue to flow into the sector through private equity and real estate investment.

Hybrid models drive demand

Hybrid work is here to stay, and there is no stopping the growth in personal usage of social media, online gaming, and streaming applications. With this, there is a need for new technology, more robust internet connectivity, and innovative data storage solutions – and, therefore, an influx of data centers to support these needs.

The increased demand for data centers continues to pose challenges for the availability of land and power causing operators to look to new markets with more availability. U.S. market absorption reached 1,087 MW in the first half of 2022, more than 95% of total demand in 2021. Scroll through to see performance by region.

U.S. data center absorption trends:

EMEA data center absorption trends:

APAC data center absorption trends:

Download JLL’s latest Data Center Report for more insights on the data center industry’s performance.

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