Rising demand for data centers reshapes global real estate market, research reveals

By Kim Dong-young Posted : May 9, 2025, 15:58 Updated : May 9, 2025, 15:58
A visual of data center capacity growth from Cushman  Wakefield Courtesy of Cushman  Wakefield
Courtesy of Cushman & Wakefield
SEOUL, May 9 (AJP) - A surge in global demand for data centers is significantly influencing the dynamics of the real estate market around the world, according to a recent analysis by Cushman & Wakefield.

The global commercial real estate services firm compared data centers worldwide and found that development pipelines have reached historic levels this year, with North and South America driving market growth.

Virginia stands at the forefront with ongoing development exceeding 15 gigawatts in planned capacity, along with the expansive presence of data centers for tech giants such as Amazon, Google, and Microsoft.

"We expect total capacity to continue expanding across all global regions, with each projected to see at least double-digit growth based on current development pipelines," said John McWilliams, a head researcher at Cushman & Wakefield.

Development strategies are pivoting from urban centers toward peripheral locations. Phoenix, Sydney, and Virginia are garnering attention as suburban markets capable of accommodating high-power integration, reflecting an industry-wide push to secure expansive sites for sustainable campus-style developments.

Non-traditional industrial sectors including electric vehicle and semiconductor companies, have joined the competition to acquire sites with pre-established utility connections. These properties have become valuable strategic assets amid long wait times for power supply.

While the Midwest region of America maintains relatively affordable costs, areas such as Indianapolis and Iowa face mounting price pressures due to demand spillover from neighboring high-cost markets.

The Asia-Pacific region continues its steady growth despite supply constraints. Ten of the world's top 30 locations are included in this region, with Johor Bahru in Malaysia and Singapore recording the lowest vacancy rates. Beijing secured eighth place in overall rankings, surpassing several U.S. cities, and ranks second globally behind Virginia in operational market size.

Notable growth in the Asia-Pacific region also includes Seoul, which ranked ninth in the established market rankings, while Busan secured third place in the emerging market rankings.
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