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Andrew Batson, global head of data center research at JLL, told RCR Wireless News that data center markets are still growing
In sum – what to know:
Hyperscale demand remains durable – AI is only part of the story, with cloud growth, traffic, and storage needs sustaining long-term expansion.
Phased builds reduce risk – Developers are limiting exposure by building incrementally, while 77% of projects under construction are already pre-leased.
Rents keep rising – JLL expects 7% annual rent growth through 2030 as power constraints push vacancy near 1% across the Americas.
Gigawatt-scale data center projects may dominate headlines, but most facilities being built today remain well below the 100MW mark, according to Andrew Batson, global head of data center research at JLL. He argues that hyperscale demand at scale remains sustainable through 2030, supported by a broad set of structural demand drivers beyond artificial intelligence.
Batson told RCR Wireless News that AI is only one component of overall data center growth. Cloud revenue expansion, rising internet traffic, and long-term data storage needs continue to provide a stable and diversified demand base for the sector. These fundamentals underpin continued expansion even if AI investment cycles fluctuate.
Risk is also being reduced by how projects are delivered. Rather than building massive campuses all at once, developers are increasingly phasing projects over time—building, leasing, and then moving to the next phase. This approach limits financial exposure and allows supply to track demand more closely.
Speculative construction remains limited. Approximately 77% of projects currently under construction are already pre-committed, providing further stability for both developers and investors. As a result, Batson emphasized that the market is not oversupplied, despite the scale of some announced developments.
“The areas best positioned to win are those with ample developable land near national fiber lines and large population centers. The largest data center markets like Virginia, Texas, Ohio, Arizona, and Georgia are still growing with plenty of land on the outskirts of those metropolitan areas. The largest markets will get larger, secondary markets will grow and new markets will continue to emerge. It is not a zero-sum game,” Batson added.
In a recent report, JLL projects data center rents in the Americas will rise at a 7% compound annual growth rate through 2030, driven by hyperscale expansion and severe supply constraints tied to power availability.
Vacancy across the region stands at roughly 1%, leaving customers with limited options in many markets. While competition among developers to secure long-term tenants is helping contain rent growth at the margin, power constraints remain the dominant factor limiting new supply and supporting higher pricing, JLL said.
