Data Center Real Estate Market Size and Outlook 2031

Report Description

Key Insights	Details
Forecast Period	2026 - 2031
Market Size (2025)	USD 74.62 Billion
CAGR (2026-2031)	11.48%
Fastest Growing Segment	Edge Data Center Properties (15.20% CAGR through 2031)
Largest Market	North America
Market Size (2031)	USD 143.23 Billion

Market Overview

The Global Data Center Real Estate Market as expected to grow from USD 74.62 Billion in 2025 to USD 143.23 Billion by 2031 at a 11.48% CAGR. The global data center real estate market encompasses specialized physical properties and commercial buildings equipped with high-density power, advanced cooling infrastructure, and secure connectivity to house enterprise computing equipment and servers. According to CBRE, in 2025, North American data center users absorbed 2,497.6 megawatts, which was up 38 percent from the previous year. Market expansion is primarily supported by the rapid acceleration of artificial intelligence training workloads, widespread corporate migration to cloud computing services, and the continuous digitization of consumer and enterprise data.

Despite robust structural demand, the market faces significant headwinds that could impede long-term expansion. According to JLL, power, rather than location or cost, has become the primary site selection criterion due to multiyear wait times for electrical grid connections. These severe power availability constraints and transmission bottlenecks limit the velocity at which new facilities can be brought online.

Key Market Drivers

AI-Driven Hyperscale Demand Shapes Data Center Real Estate and Design
Exponential growth in artificial intelligence and machine learning workloads serves as a primary catalyst for physical real estate expansion. According to JLL, in August 2026, in the India data centre 2026 mid-year report, pre-committed hyperscale capacity accounted for 82 percent of total absorption, primarily driven by high-density artificial intelligence computing demands. Facility developers are continually redesigning structural layouts to support high-density server configurations and specialized liquid cooling systems. This operational evolution directly influences commercial property specifications across established and secondary metropolitan clusters.

Hyperscale Expansion Drives Land Acquisition and Capital Expenditure
Proliferation of hyperscale data center infrastructure development further accelerates commercial property acquisition and large-scale campus construction. According to Gartner, Inc., in June 2026, electricity demand for data centers worldwide is projected to grow 26% in 2026. Large technology operators secure extensive tracts of land to construct massive multi-megawatt facilities designed to host extensive server deployments. According to BloombergNEF, in March 2026, the capital expenditure of the 14 largest publicly owned data center operators globally is seen close to $750 billion this year against a little less than $450 billion last year. These capital allocations reflect ongoing commitments to expand physical footprints globally.

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Key Market Challenges

Power availability constraints limit data center expansion.
Power availability constraints and electrical grid bottlenecks directly restrict the expansion of the global data center real estate market. Because modern facilities require immense energy for computing and cooling infrastructure, severe delays in electrical grid connections slow down the delivery of new properties.

2025 survey identifies power availability as a top operational challenge.
According to Uptime Institute, in 2025, power availability issues emerged as a top operational challenge cited by 37 percent of surveyed digital infrastructure operators. When electrical connections face multiyear waiting lists, real estate developers cannot bring new commercial buildings online to meet tenant requirements. This limitation stalls physical property development and directly restricts market growth velocity.

Key Market Trends

Geographic diversification into secondary and tier-2 markets
Geographic expansion into secondary and tier-2 markets has emerged as a major development strategy for the global data center real estate sector as primary metropolitan hubs experience severe land scarcity and high entry barriers. Commercial property developers and cloud providers are acquiring parcels in alternative regional locations to ensure continuous deployment velocity and lower occupancy costs. According to Cushman & Wakefield, in September 2026, in the India data centre market update, India is projected to require US$29.9 billion in development capital through 2030, reflecting the rapid broadening of digital infrastructure beyond core commercial clusters. This regional diversification allows real estate operators to bypass congested urban utility networks while capturing growing enterprise demand across expanding local digital economies.

On-site renewable microgrids enhancing reliability and delivery timelines
Integration of renewable energy microgrids on real estate parcels is transforming how commercial property assets are planned, powered, and operated to overcome widespread transmission bottlenecks. Developers are increasingly incorporating on-site generation and battery storage directly into property blueprints to provide reliable electricity independent of delayed regional grid connections. According to the U.S. Energy Information Administration, in September 2026, data-center development and manufacturing are driving higher electricity consumption, with U.S. electricity sales expected to reach record levels and strengthening demand for resilient, flexible, and grid-interactive data-center microgrids. These on-site power configurations enable real estate stakeholders to accelerate project delivery timelines while meeting strict corporate sustainability mandates.

Segmental Insights

Edge Data Center Growth Driven by 5G and IoT Latency Demands
Within the global data center real estate market, Edge Data Center Properties emerge as the fastest growing segment. This rapid expansion is driven by the rising deployment of fifth-generation mobile networks and Internet of Things devices, which require localized data processing to minimize latency. Furthermore, enterprise reliance on real-time analytics and distributed computing necessitates smaller, decentralized facilities positioned closer to end users. Organizations expand these distributed real estate footprints to handle localized workloads efficiently while complying with regional data residency mandates established by governing authorities.

Regional Insights

North America Leads Global Data Center Real Estate Driven by Cloud and AI Demand
According to market intelligence from real estate services firm CBRE, North America maintains its position as the leading region in the global data center real estate market. This dominance is primarily driven by extensive ongoing investments from major cloud service providers and artificial intelligence enterprises that require massive blocks of contiguous capacity. Furthermore, the region benefits from established technology ecosystems and widespread availability of large-scale powered land sites that successfully accommodate high-density computing workloads, reinforcing its leadership position across commercial property portfolios.

Recent Developments

In September 2025, Equinix opened its first International Business Exchange data center in Chennai, India, designated as CN1. Situated on a nearly six-acre plot in Siruseri, the facility was established with an initial investment of US$69 million to deliver 800 cabinets of capacity in its first phase, with a final capacity target of 4,250 cabinets. This launch expanded the company's Indian footprint alongside its existing Mumbai campus, enhancing the availability of high-uptime digital infrastructure to support regional enterprises operating within the expanding data center real estate market.
In December 2024, Vantage Data Centers announced that GIC and MEAG would jointly invest €1.4 billion into the company's European, Middle Eastern, and African digital real estate platform. This transaction supported the expansion of the provider's regional portfolio, which encompassed approximately 2.5 gigawatts of operational and developing IT capacity. The strategic funding underscored ongoing financial commitments from major global institutional investors aimed at scaling high-performance data center real estate assets to meet surging demands driven by enterprise cloud adoption and artificial intelligence workloads.
In October 2024, Equinix opened its first International Business Exchange data center in Johannesburg, South Africa, named JN1. Located in a primary economic center of the region, the newly launched real estate facility offered over 20,000 square feet of colocation space in its initial phase, with provisions to expand beyond 100,000 square feet at full build-out. The site was designed with high power capacity and liquid cooling capabilities to accommodate high-density deployments, significantly strengthening the digital infrastructure and connectivity options within the regional data center real estate market.
In March 2024, Digital Realty formed a joint venture with Mitsubishi Corporation to develop two pre-leased data centers in the Dallas metro area. Under the agreement, the partner acquired a 65% equity interest in the real estate project for approximately $200 million, while the data center provider retained a 35% stake and managed daily operations. The initial phase delivered 16 megawatts of critical IT capacity with an estimated budget of $400 million, supporting the local data center real estate market by addressing growing enterprise requirements for cloud and colocation infrastructure in North America.

Key Market Players

Equinix, Inc.
Digital Realty Trust, Inc.
NTT Global Data Centers
CyrusOne Inc.
QTS Realty Trust, LLC
Iron Mountain Incorporated
STACK Infrastructure
Vantage Data Centers LLC
EdgeConneX, Inc.
GDS Holdings Limited

By Property Type	By Ownership	By Enterprise Size	By End-Users	By Region
Colocation Hyperscale Edge Data Center Properties Modular Data Center Properties Others (Wholesale, Retail and Enterprise)	Leased Owner Occupied	Large Enterprises Small and Medium Enterprises	Information Technology and Telecom Banking, Financial Services, and Insurance Government and Public Sector Healthcare Other End Users	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Data Center Real Estate Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Data Center Real Estate Market, By Property Type:

Colocation
Hyperscale
Edge Data Center Properties
Modular Data Center Properties
Others (Wholesale, Retail and Enterprise)

Data Center Real Estate Market, By Ownership:

Leased
Owner Occupied

Data Center Real Estate Market, By Enterprise Size:

Large Enterprises
Small and Medium Enterprises

Data Center Real Estate Market, By End-Users:

Information Technology and Telecom
Banking, Financial Services, and Insurance
Government and Public Sector
Healthcare
Other End Users

Data Center Real Estate Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Data Center Real Estate Market.

Available Customizations:

Global Data Center Real Estate Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Data Center Real Estate Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Data Center Real Estate Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Property Type (Colocation, Hyperscale, Edge Data Center Properties, Modular Data Center Properties, Others (Wholesale, Retail and Enterprise))

5.2.2. By Ownership (Leased, Owner Occupied)

5.2.3. By Enterprise Size (Large Enterprises, Small and Medium Enterprises)

5.2.4. By End-Users (Information Technology and Telecom, Banking, Financial Services, and Insurance, Government and Public Sector, Healthcare, Other End Users)

5.2.5. By Region

5.2.6. By Company (2025)

5.3. Market Map

6. North America Data Center Real Estate Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Property Type

6.2.2. By Ownership

6.2.3. By Enterprise Size

6.2.4. By End-Users

6.2.5. By Country

6.3. North America: Country Analysis

6.3.1. United States Data Center Real Estate Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Property Type

6.3.1.2.2. By Ownership

6.3.1.2.3. By Enterprise Size

6.3.1.2.4. By End-Users

6.3.2. Canada Data Center Real Estate Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Property Type

6.3.2.2.2. By Ownership

6.3.2.2.3. By Enterprise Size

6.3.2.2.4. By End-Users

6.3.3. Mexico Data Center Real Estate Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Property Type

6.3.3.2.2. By Ownership

6.3.3.2.3. By Enterprise Size

6.3.3.2.4. By End-Users

7. Europe Data Center Real Estate Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Property Type

7.2.2. By Ownership

7.2.3. By Enterprise Size

7.2.4. By End-Users

7.2.5. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Data Center Real Estate Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Property Type

7.3.1.2.2. By Ownership

7.3.1.2.3. By Enterprise Size

7.3.1.2.4. By End-Users

7.3.2. France Data Center Real Estate Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Property Type

7.3.2.2.2. By Ownership

7.3.2.2.3. By Enterprise Size

7.3.2.2.4. By End-Users

7.3.3. United Kingdom Data Center Real Estate Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Property Type

7.3.3.2.2. By Ownership

7.3.3.2.3. By Enterprise Size

7.3.3.2.4. By End-Users

7.3.4. Italy Data Center Real Estate Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Property Type

7.3.4.2.2. By Ownership

7.3.4.2.3. By Enterprise Size

7.3.4.2.4. By End-Users

7.3.5. Spain Data Center Real Estate Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Property Type

7.3.5.2.2. By Ownership

7.3.5.2.3. By Enterprise Size

7.3.5.2.4. By End-Users

8. Asia Pacific Data Center Real Estate Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Property Type

8.2.2. By Ownership

8.2.3. By Enterprise Size

8.2.4. By End-Users

8.2.5. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Data Center Real Estate Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Property Type

8.3.1.2.2. By Ownership

8.3.1.2.3. By Enterprise Size

8.3.1.2.4. By End-Users

8.3.2. India Data Center Real Estate Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Property Type

8.3.2.2.2. By Ownership

8.3.2.2.3. By Enterprise Size

8.3.2.2.4. By End-Users

8.3.3. Japan Data Center Real Estate Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Property Type

8.3.3.2.2. By Ownership

8.3.3.2.3. By Enterprise Size

8.3.3.2.4. By End-Users

8.3.4. South Korea Data Center Real Estate Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Property Type

8.3.4.2.2. By Ownership

8.3.4.2.3. By Enterprise Size

8.3.4.2.4. By End-Users

8.3.5. Australia Data Center Real Estate Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Property Type

8.3.5.2.2. By Ownership

8.3.5.2.3. By Enterprise Size

8.3.5.2.4. By End-Users

9. Middle East & Africa Data Center Real Estate Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Property Type

9.2.2. By Ownership

9.2.3. By Enterprise Size

9.2.4. By End-Users

9.2.5. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Data Center Real Estate Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Property Type

9.3.1.2.2. By Ownership

9.3.1.2.3. By Enterprise Size

9.3.1.2.4. By End-Users

9.3.2. UAE Data Center Real Estate Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Property Type

9.3.2.2.2. By Ownership

9.3.2.2.3. By Enterprise Size

9.3.2.2.4. By End-Users

9.3.3. South Africa Data Center Real Estate Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Property Type

9.3.3.2.2. By Ownership

9.3.3.2.3. By Enterprise Size

9.3.3.2.4. By End-Users

10. South America Data Center Real Estate Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Property Type

10.2.2. By Ownership

10.2.3. By Enterprise Size

10.2.4. By End-Users

10.2.5. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Data Center Real Estate Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Property Type

10.3.1.2.2. By Ownership

10.3.1.2.3. By Enterprise Size

10.3.1.2.4. By End-Users

10.3.2. Colombia Data Center Real Estate Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Property Type

10.3.2.2.2. By Ownership

10.3.2.2.3. By Enterprise Size

10.3.2.2.4. By End-Users

10.3.3. Argentina Data Center Real Estate Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Property Type

10.3.3.2.2. By Ownership

10.3.3.2.3. By Enterprise Size

10.3.3.2.4. By End-Users

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Data Center Real Estate Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Equinix, Inc.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Digital Realty Trust, Inc.

15.3. NTT Global Data Centers

15.4. CyrusOne Inc.

15.5. QTS Realty Trust, LLC

15.6. Iron Mountain Incorporated

15.7. STACK Infrastructure

15.8. Vantage Data Centers LLC

15.9. EdgeConneX, Inc.

15.10. GDS Holdings Limited

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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