The fastest-growing segments of the data center space are hyperscalers and edge data centers.

Skills shortages in technical fields limits new construction and makes it more difficult to own and operate a data center. Supply chain delays have limited new construction, altering market dynamics toward pre-leasing. Those who react the fastest and improve efficiency with both energy and water usage stand to benefit as environmental impacts are top-of-mind for most leading companies. Sustainability and energy efficiency are top priorities for data center users, operators, and investors. The global colocation data center market size is forecast to grow with a 5-year CAGR of 11.3% from 2021-2026, and the hyperscale market is expected to grow even faster, at approximately a 20% CAGR.

The demand from smartphonebased applications has driven an appetite for more digital infrastructure from cloud service providers, hyperscalers and over-the-top media companies in all regions. Internet usage is almost universal, reaching 91% in North America, 87% in Europe and 73% Asia Pacific, and mobile phone subscription and use rates are even higher at above 90% in most markets. Additionally, as other markets become more developed, emerging markets present an opportunity with less land and power constraints. However new smaller data centers such as containerized, modular, pre-fabricated and hyperconverged infrastructure as well as national data sovereignty laws mandating in-country data storage, are contributing to the opening of these markets. Secondary markets: typically have 100-600MW of supply and have recently become the focus of attention as investors, lenders and developers seek new opportunities in less crowded markets.Įmerging markets: continue to be challenged by varied constraints such as infrastructure, regulatory requirements, skills, political instability and have traditionally been treated with caution. They will continue to see strong growth as colocation and hyperscalers consolidate their positions in safe metros that have become sub-regional hubs. Primary markets: many of these markets are now pushing beyond the 1,000MW mark.

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