Investments in data centers have surged in recent years and are likely to keep rising through the end of the decade. Worldwide data center capacity will increase by 46% over the next two years, equivalent to a jump of almost 21,000 megawatts, according to real estate consultancy Knight Frank. The firm also expects capital expenditures to exceed $286 billion by 2027, driven by mounting demand for AI-optimized infrastructure, cloud services, and digital initiatives.
The AI boom is driving demand for data centers as these specialized facilities provide the computing power and data storage needed to train and operate AI applications like large language models.
