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JLL’s Sean Farney told RCR Wireless News that the industry is under pressure to deliver capacity quickly as hyperscalers commit large spending plans
In sum – what to know:
AI buildouts are accelerating timelines – Developers are under pressure to deliver larger, more complex facilities faster as hyperscalers commit major AI spending.
Capital flows remain strong – Data centers are attracting record M&A activity and institutional investors, with pension funds viewing the asset class as relatively safe.
Secondary markets are gaining traction – Power constraints in primary hubs are pushing developers toward new locations and smaller inference-focused facilities.
The rapid expansion of AI infrastructure is reshaping development priorities, financing dynamics, and location strategies across global markets, Sean Farney, vice president of data center strategy at JLL, said in an interview with RCR Wireless News.
On the tension between rapid deployment and sustainability, Farney said the industry is under pressure to deliver capacity quickly as hyperscalers commit large spending plans.
He added that developers are increasingly turning to modular construction and adaptive reuse to speed up deployments. “We are seeing a much greater use of modular concepts in building infrastructure… as well as actual modules or containerized solutions,” he said, noting these approaches are “a boon to time to revenue.” He also highlighted the return of adaptive reuse, repurposing industrial sites with existing power connections to accelerate projects and reduce build cycles.
On financing trends, Farney said investment activity in the sector continues to grow. “The amount of merger and acquisition activity is continuing to set new records,” he said, adding that interest from the investment community is “unparalleled.” Data centers, he noted, have become a top-performing real estate asset in recent years, attracting institutional capital. “We’re seeing now that data center investment is considered relatively de-risked or safe money such that pension funds are investing… in digital infrastructure assets,” he said.
Farney also pointed to the growing role of secondary and emerging markets as primary hubs face power and land constraints. “Anywhere with available power is going to be a target for site selection,” he said, noting that developers are increasingly looking beyond traditional tier-one locations. He added that the shift from large AI training facilities to smaller inference sites closer to end users could drive a new class of edge-like data centers built near enterprises.
