Published January 13, 2026
By NZero
The global data center industry is entering a decisive phase in 2026 as surging demand from artificial intelligence, cloud computing, and digital services collides with physical constraints in power, construction capacity, and capital availability. Once treated as a niche real estate asset class, data centers have become critical infrastructure underpinning economic growth across technology, finance, healthcare, manufacturing, and public services. According to JLL Research, global data center occupancy is approaching 97 percent, power availability has overtaken location and cost as the primary site selection factor, and capital requirements are rising sharply. These shifts are forcing corporates and investors to rethink long-term infrastructure strategies, with implications that extend far beyond the data center sector itself.
One of the most significant changes highlighted in JLL’s 2026 outlook is the elevation of power availability as the dominant factor in data center site selection. Multi-year grid interconnection queues and regional transmission constraints are reshaping where facilities can realistically be built. This power-first approach is influencing not only data center developers but also other power-intensive industries competing for the same limited capacity.
Utilities are facing mounting pressure to accelerate generation, transmission, and distribution investments while balancing affordability and reliability. In regions with high data center concentration, such as Northern Virginia, Texas, and parts of the Midwest, industrial manufacturers, hydrogen developers, and electric vehicle supply chains are encountering tighter access to grid capacity. This competition is beginning to influence state-level economic development strategies, with policymakers weighing the tradeoffs between digital infrastructure growth and broader industrial expansion. As a result, power planning is becoming a central determinant of regional competitiveness.
With global occupancy near historic highs, landlords retain substantial negotiating leverage, and JLL anticipates continued rent growth through 2030. Corporates are increasingly locking in long-term capacity earlier than operationally necessary, using preleasing and phased commitments to hedge against future scarcity. While this strategy provides certainty, it also raises fixed cost exposure across multiple industries.
Technology firms developing AI models face escalating infrastructure costs that influence product pricing and investment timelines. Financial institutions reliant on low-latency environments must absorb higher long-term lease commitments into risk and capital planning frameworks. Media, gaming, and streaming companies are encountering rising digital distribution costs that affect content margins and scalability. These dynamics illustrate how data center economics are now embedded directly into the cost structures of digital-dependent industries.
Artificial intelligence workloads are fundamentally altering data center design. Rack densities approaching 100 kilowatts and the rapid adoption of liquid cooling systems are increasing construction complexity and capital intensity. These technical requirements are rippling through global supply chains.
Semiconductor manufacturers, server OEMs, and power equipment suppliers are experiencing sustained demand growth, while cooling and thermal management vendors are emerging as strategic bottlenecks. Engineering, procurement, and construction firms face labor shortages and longer delivery timelines, contributing to persistent project delays. JLL notes that more than half of data center projects experienced schedule disruptions in 2025, a trend expected to continue. These constraints are influencing procurement strategies across adjacent industries that rely on the same electrical and mechanical components.
Hybrid infrastructure portfolios are becoming the default model for large enterprises. While overall on-premise footprints are shrinking, sensitive workloads remain on-site, complemented by colocation, hyperscale cloud, and edge deployments. This blended approach is reshaping IT strategies across sectors.
Healthcare systems and government agencies maintain partial on-site infrastructure to meet regulatory and data sovereignty requirements. Retailers, logistics operators, and manufacturers are integrating edge computing with centralized data centers to support automation and real-time analytics. These shifts are driving demand for network integration, cybersecurity, and interoperability services, creating new growth opportunities for service providers while increasing operational complexity for end users.
Supply chain volatility, equipment shortages, and extended construction schedules are forcing corporates to build greater risk buffers into deployment plans. Modular construction, prefabricated components, and all-in-one systems are gaining traction as tools to reduce uncertainty. For investors, these conditions are reshaping underwriting assumptions and return expectations.
Longer development timelines delay revenue realization, while higher upfront capital commitments increase exposure to macroeconomic and regulatory risk. At the same time, sustained demand and high occupancy rates support the view that the current expansion reflects structural digital growth rather than speculative excess. Infrastructure funds, utilities, and institutional investors are increasingly aligning capital deployment with long-term energy planning and decarbonization strategies.
JLL’s 2026 priorities for corporates and investors underscore a structural transformation in how digital infrastructure is planned, financed, and operated. Data centers are no longer isolated real estate assets but interconnected nodes in global energy, supply chain, and industrial systems. Power availability, capacity scarcity, and AI-driven design are reshaping cost structures across industries, influencing regional economic development, and accelerating the convergence of digital growth with energy policy. As data demand continues to rise, industries that depend on digital infrastructure will need to adapt procurement strategies, capital planning, and ESG frameworks to operate effectively in an increasingly constrained and competitive environment.
