Introduction
The global data centre industry is experiencing unprecedented demand, driven primarily by the explosive growth of Artificial Intelligence (AI) and High-Performance Computing. According to CBRE’s 2025 Global Data Centre Trends report, the sector is experiencing record-low vacancy rates, with the global average falling to 6.6% in Q1 2025 and Europe projected to reach an all-time low of 6.5% by the close of 2026. Despite the addition of substantial new capacity, North America’s data centre market achieved a record-low vacancy rate of 1.6% in H1 2025. New capacity pipelines are strong, with over 750 MW expected to come online across Europe in 2026 and more than 5.2 GW being constructed in North America. Market pricing has risen, with global average rents up 3.3% year-over-year to $217.30/kW/month, reflecting high demand and low supply, especially for AI-ready capacity.
AI workloads are driving exceptional power demands, with grid shortages as the primary limiting factor in core markets worldwide. Global data centre electricity consumption is expected to continue to rise, with AI accounting for a growing share of usage. Key trends for 2026 include an unprecedented number of new data centre build projects with power densities increasing and a continued drive for efficiency.
The AI-Driven Power Surge
AI is no longer an emerging technology; it is dominant in the market and is dynamically changing infrastructure requirements. In 2026, AI-related data centres are fuelling multi-megawatt build projects. High-density GPU racks consuming 100 kW or more generate intense heat, which in turn requires new cooling technology. Power availability and delivery timescales have become the primary factors in site selection. In Europe, grid constraints are preventing expansion projects in existing facilities and limiting growth in traditional locations. In North America, connection delays are driving a shift to secondary markets. Hyperscalers are pursuing alternative power strategies, including natural gas generators and Small Modular Reactors (SMRs), as well as funding power infrastructure projects to fulfil demand.
The Liquid Cooling Revolution
Traditional air cooling cannot handle AI’s thermal densities, prompting a rapid shift to liquid solutions. Operators are quickly adopting liquid cooling (direct-to-chip or immersion) to support these higher rack densities. These technologies remove heat from the IT faster and more efficiently, which also reduces cooling power costs and environmental impacts. Direct-to-chip, cold-plate and immersion systems are becoming mainstream for high-density AI clusters.
Heat recovery, capturing waste heat for district heating or industrial reuse, is gaining momentum, particularly in Europe, where sustainability regulations are stringent. However, heat reuse can be challenging, as water temperatures are relatively low and data centre facilities are rarely located near points of potential reuse.
Geographic Diversification
Site diversification is helping to mitigate grid congestion in primary markets (e.g. Frankfurt, Singapore, Dublin and London), favouring secondary locations with abundant power, land availability, and ease of permitting. In some cases, this trend can also result in lower-cost power, but connectivity at scale and the availability of experienced data centre staff can be challenging.
Power Infrastructure, Innovation and Talent
Grid connection queues and reliability concerns are driving hybrid energy mixes: renewables plus storage, natural gas for backup, microgrids, and emerging Small Modular Reactor pilots.
There is a lack of talent in construction trades, cooling engineers, energy experts, and AI specialists. Upskilling programmes, university partnerships, and industry-led training are essential to close gaps and build competitive advantage.
2026 is going to be a pivotal year for the data centre industry. New facilities are being announced daily; there are bottlenecks with power, planning and even some negative public reactions as power consumption hits the news. Some commentators are calling the current soaring growth a new bubble; it certainly has all the characteristics, yet demand increases relentlessly. What we can be certain of is change: advances in AI, improvements in infrastructure, greater scale, and an ever-increasing number of data centres.
