Data center sector supported by growth in technology industry

New technologies are driving demand for digital infrastructure, and the data center industry is poised to benefit, according to JLL’s Data Centers 2023 Global Outlook.

Data centers are a key part of the infrastructure underlying our interconnected digital world and will need to grow at a significant rate to keep up with demand. According to JLL, the size of the colocation data center market is forecast to increase at a compound annual growth rate (CAGR) of 11.3 percent between 2021 and 2026, while the hyperscale market is forecast to grow at a 20 percent CAGR.

Each revolutionary new technology — from the internet to mobile smartphones to autonomous vehicles to generative artificial intelligence — requires a substantial ramp-up in data center capacity.

JLL has identified a few key issues affecting the data center industry: