Data centre deal values rise 7.5% pa as demand escalates
The global data centre market is destined for unprecedented growth with more than £229 billion of capital likely to be targeted at the sector by 2026.
This surge has been calculated by Knight Frank in its latest global data centres report which states that a 46% increase in data centre capacity worldwide has been forecast by 2027, equating to an additional 20,828 megawatts (MW).
The increase could rise to 177% by 2030 and reflects the intensifying demand for digital infrastructure to support AI, cloud computing, and enterprise digital transformation, the report explains.
While 2023 saw a 36% drop in data centre property transaction volumes, attributed to global interest rate hikes, in 2024 the volumes increased 118% to £24.5 billion. This figure includes single-asset purchases, portfolio acquisitions, redevelopment opportunities, and development site sales. The average data centre property transaction value was £59 million in 2024, up 15% on 2023 and up 44% on 2019’s average – pre COVID. Since 2019, average transaction value has grown at a compound annual growth rate of 7.5%.
Knight Frank said North America remains the dominant market globally, with 11,638 MW in new capacity, reflecting a 54% growth rate and £128 billion of capital deployed. The region combines homegrown hyperscale dominance, increasing enterprise colocation demand, and strategic expansion into emerging secondary markets.
Europe, Middle East & Africa (EMEA) is set to expand by 4,529 MW (44%), requiring a £49.8 billion investment, with a shift towards secondary hubs such as Milan and Madrid, driven mainly by power constraints in core markets like Frankfurt and London.
A 4,174 MW (32%) increase is forecast for Asia-Pacific, supported by a £45.9 billion investment. The APAC market is highly diverse, with significant development in established hubs such as Tokyo, but also in emerging locations such as Johor, Malaysia, as hyperscalers seek alternative expansion opportunities.
“The global data centre industry is undergoing rapid transformation, with hyperscaler and colocation providers prioritising markets that offer access to power, robust connectivity, and a favourable regulatory environment,” said Knight Frank’s global head of data centres Stephen Beard.
“As global capital races to capture the next wave of digital infrastructure growth, the competition for prime development sites, particularly in power-constrained locations, will intensify. Industry stakeholders must navigate regulatory complexities, power availability concerns, and sustainability requirements to remain competitive in this high-growth sector.”
