DatacenterHawk, the premier global platform for analysing data centre real estate, has unveiled its 3Q 2023 Data Centre Market Recap. This report highlights the absorption of 1.4 GW of data centre capacity and continued growth in global data centre markets, despite power supply challenges worldwide. Major markets in Asia-Pacific (APAC), Europe, Latin America (LATAM), and North America witnessed substantial expansion and absorption in 3Q, building upon the momentum reported in datacenterHawk’s 2Q 2023 findings, which revealed 1.7 GW of capacity absorbed in the first half of the year.
Leveraging its proprietary standardised method, the datacenterHawk team provides real-time data to monitor trends and pricing across more than 35 markets in APAC, Europe, LATAM, and North America. datacenterHawk’s most updated data and analysis are available in its 3Q summary.
“The global data centre industry is experiencing strong growth throughout 2023, with increasing demand and the rise of AI requirements leading the development of new submarkets and opportunities in established and emerging regions,” stated David Liggitt, Founder and CEO at datacenterHawk. “We aim to help make sense of how these markets can best overcome challenges and where that might lead to future opportunities in a period of tremendous growth for the industry.”
Key highlights from the datacenterHawk report include:
Asia-Pacific: Demand for data centre development in APAC remains strong, with hubs like Singapore and Hong Kong drawing the attention of hyperscale companies. However, supply limitations due to manufacturing challenges outside the region are hindering the delivery of new capacity. Despite these challenges, datacenterHawk anticipates that future opportunities will help alleviate pipeline constraints in the region.
Europe: Europe is grappling with an ongoing power supply shortage, prompting companies to secure additional capacity in anticipation of future needs. This approach exacerbates the short-term capacity shortage. Demand for space in Europe’s major FLAPD markets is growing, even as supply remains limited. Power constraints in major markets indicate that AI implementation in Europe will shift to emerging markets and FLAPD sub-markets. With power challenges and the time required for site acquisition and demolition, European markets are facing delays in development timelines.
Latin America: Growth in LATAM markets slowed in 3Q due to economic challenges, supply chain issues, and power constraints. Despite these difficulties, LATAM countries continue to commission significant power to encourage further developments. AI implementation in LATAM is expected to lag until 2025, and secondary markets may play a role. Hyperscale growth will drive LATAM’s industry development, but challenges with AI implementation may impede progress.
North America: Campus development remains a significant driver in the North American market, with developers acquiring large plots of land for long-term projects. Absorption remains high, driven by AI and cloud growth, but increased demand and reduced vacancy rates have raised costs. To address these challenges, datacenterHawk projects increased speculative capital spending and greater growth in North America’s submarkets.