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An inflection point for our industry

Paul Barry, Data centre construction cost index lead

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CONTEXT

Artificial intelligence (AI) is dominating political debate and boardroom discussions

The vital role of data centres in enabling a digital future is better understood – and more closely scrutinised – than ever. This year, global data centre market revenue is projected to reach US$527.5bn, in large part driven by the pace of AI investment and development.

The increased spotlight on the sector, coupled with booming global demand for new data centre development, is bringing fresh challenges, as well as significant opportunities. 73 percent of respondents to our 2025 global survey of the data centre industry are confident that the data centre market remains ‘recession proof’. However, limitations may be placed upon the pace of growth due to intensifying challenges in the planning, delivery and operation of facilities.

Being able to understand the cost of building in established or emerging hubs and to compare regional trends is essential for global organisations looking to capitalise upon this buoyant market, whether investing in traditional cloud or AI data centres. Covering 52 markets, our latest index provides a global view on costs.

Drawing on insights from a wide-reaching sentiment survey, answered by a cross-section of the industry, our report examines the competing forces in the sector. Ongoing optimism and a continued wall of investment must be met with careful navigation of challenges and mitigation of risks. From power availability and cooling solutions through to alternative delivery models for increasingly complex projects, we explore the most pressing issues facing clients today. In this fast-moving industry, understanding commercial factors, demand pulls and how best to strengthen supply chains will determine who is set up for success.

Figure 1:

At present, I consider the data centre industry as recession-proof

INFLECTION

2025 will be looked back upon as an inflection point for our industry, where AI data centres move to centre stage. To ready ourselves, this is a key moment to be bolder and more innovative in our approaches to delivering these assets. This will ensure the critical infrastructure is in place to unlock the exponential opportunities unfolding from digital advances.

AUTHOR

Paul Barry Data centre construction cost index lead


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