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The Data Centre Transformation : Power , Partnerships , and Emerging Markets
The data centre sector has undergone a seismic shift in the last five years , driven by the rapid expansion of cloud computing and AI . This transformation is reshaping the industry ’ s landscape , creating new opportunities for operators and investors alike .
Here are three key trends crucial to maximising value in this dynamic market :
• Power Takes Centre Stage
The traditional focus on location has given way to a new priority : power . Data centre operators are now prioritising access to abundant , cost-effective , and preferably renewable energy sources . This shift is particularly crucial as we enter the AI era , which demands unprecedented levels of computing power . Proximity to highvoltage infrastructure and the ability to scale power capacity at speed are now paramount considerations in site selection .
• The Rise of Strategic Partnerships
As data centres grow to unparalleled scales , a new model of collaboration is emerging . Operators , landowners , and developers are forming strategic joint ventures to secure vast , viable land parcels capable of supporting the massive capacity required for AI and cloud computing . These partnerships are becoming essential for meeting the escalating demands of the digital economy .
• Tier 2 Markets Come of Age
Emerging markets are now no longer secondary in the data centre industry , challenging the dominance of traditional hubs . These regions are attracting significant attention due to their cheaper , readily available land and accessible power resources .
Moreover , major US and Chinese hyperscale customers are opening new cloud availability zones in these areas , creating attractive opportunities for early movers . This evolving landscape presents both challenges and opportunities for industry players .
As the sector continues to adapt to the demands of AI and cloud computing , those who can navigate these changes will be well-positioned to capitalise on the data centre revolution .
Get in touch : datacentresteam @ knightfrank . com