Growth of Data Centers

Data centers are the new infrastructure of the 21st century — as vital as roads, rail, and electricity. The digital economy depends on them, and demand shows no sign of slowing down.

Northern Virginia is the largest data center market in the world, constituting 13% of all reported data center operational capacity globally and 25% of capacity in the Americas.

The data center industry is growing rapidly in Virginia, both in established markets and newer ones. Significant new market growth is expected in localities south of Northern Virginia – mainly along the I-95 and I-64 corridors.

The data center sector currently sits at the beginning of one of the largest infrastructure investment supercycles seen in the modern era. The interconnected nature of data centers means the AI-fueled expansion is reshaping a number of sectors, according to a January 2026 report from real estate and investment management firm JLL.

Nearly 100 GW of new data centers will be added globally between 2026 and 2030, doubling global capacity, the JLL report says.

The global data center sector will likely expand at a 14% compound annual growth rate through 2030. Hyperscalers will remain a key driver of sector growth, executing a dual strategy of leasing and self-building.

That roughly 100 GW of new capacity equates to $1.2 trillion in real estate asset value creation. Tenants will likely spend an additional $1 to $2 trillion to fit out their space with IT equipment, according to the report.

The Americas is the largest data center region, representing about 50% of global capacity. The Americas also has the fastest growth rate of the three global regions, with a projected 17% supply compound annual growth rate through to 2030. The U.S. drives most of the activity in the region, accounting for about 90% of capacity in the Americas.

A study from McKinsey & Company projects the industry to grow at 10% a year through 2030, with global spending on the construction of new facilities reaching $49 billion.

There are so many data centers — and so many more planned — because our world is generating and relying on exponentially more data every day. Here’s why:

1. Explosive Growth of Data:

We are experiencing an unprecedented volume of digital information — from emails and social media posts to high-resolution video, AI models, medical records, and smart device activity. Global data is projected to reach 181 zettabytes by 2025, up from just 2 zettabytes in 2010 (IDC).

2. Rise of AI, Cloud, and Edge Computing drives demand for more data center space:

AI models, like ChatGPT, require massive data storage and computing power. Cloud computing lets businesses scale quickly without building their own infrastructure. Edge computing puts smaller data centers closer to users for faster performance (like self-driving cars or smart cities).

3. Shift to Digital Everything: Work, education, healthcare, entertainment, banking — nearly everything we do is now digital-first. That requires 24/7 digital infrastructure — and data centers are the backbone.

4. Support Critical Industries: Data centers are crucial for industries like defense, biotech, and energy. They provide the necessary global infrastructure for:

Subsea Cables: Acting as a landing point for transoceanic cables, like those in Virginia Beach, that bring global internet traffic to land.
Cloud Expansion: Providing the physical space needed to expand cloud computing services worldwide.
Network Redundancy: Creating resilient and reliable networks to ensure the internet stays up and running.

5. National and Economic Competitiveness: Regions and countries are racing to attract digital infrastructure to: