Demand for datacenter space is currently at a high in many markets around the globe because of the AI boom, despite issues with securing adequate powe

Datacenter demand driven by AI... but constrained by power shortages

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2024-07-04 11:30:04

Demand for datacenter space is currently at a high in many markets around the globe because of the AI boom, despite issues with securing adequate power, at least according to commercial real estate firm CBRE.

Power shortages appear to be a common theme, listed as the top concern for bit barn operators across all regions (North America, Europe, Latin America and Asia-Pacific), while vacancy rates continue to decline across most global markets due to strong demand, the company says.

Large corporations face increasing difficulties securing datacenter capacity, thanks to construction delays and power challenges impacting all markets, according to CBRE's latest report, while AI is expected to continue to drive demand in future.

In North America, datacenter inventory grew by 24.4 percent during Q1 2024, compared with the same period last year. This led to 807.5 MW of capacity being added across the four largest bit barn markets in the region - Northern Virginia, Chicago, Dallas and Silicon Valley.

CBRE noted that local governments have been forced to take steps to address power constraints by actions such as simplifying permitting and integrating more renewable energy into the grid.