Data Center Market Recap Explores Trends and Challenges across North America, Europe, LATAM, APAC Regions
DALLAS, TX – November 1, 2023 – datacenterHawk, the leading global data center real estate analysis platform, released its 3Q 2023 Data Center Market Recap reporting 1.4 GW of absorption and continued growth across global data center markets and power supply challenges worldwide. Major Asian-Pacific (APAC), Europe, Latin America (LATAM), and North America markets experienced significant growth and absorption in 3Q, following datacenterHawk’s 2Q 2023 report of 1.7 GW for the first half of 2023.
Leveraging its proprietary standardized 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 center 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.”
Highlights in the datacenterHawk report include:
Asia-Pacific: Demand for data center development in APAC countries remains high, with major hubs such as Singapore and Hong Kong continuing to draw interest from hyperscale companies. However, supply backlogs caused by challenges with manufacturing outside of the region are limiting the region’s ability to deliver on new capacity. Additionally, high absorption is leading hyperscale companies to develop large campuses on their own. Despite limited supply, datacenterHawk expects that future opportunities will alleviate some of the region’s pipeline constraints.
Europe: Europe is experiencing an ongoing power supply shortage, which has led many companies to secure additional capacity now in anticipation of their future needs, rather than wait until they need it. This is only exacerbating the capacity shortage in the near term. Additionally, demand for space in Europe’s major FLAPD markets (Frankfurt, London, Amsterdam, Paris, Dublin) is growing despite the limited supply, leading providers to plan campuses at larger scales, often necessitating the acquisition and redevelopment of existing corporate campuses due to the scarcity of suitable greenfield sites. Power constraints in major markets also signify that AI implementation in Europe will fall to emerging markets (e.g, Berlin, Madrid, the Nordic region) and FLAPD sub-markets such as Manchester and Leeds. With power difficulties and demolition times for acquired sites, European markets will experience delayed development timelines.
Latin America: Despite a recent period of high demand, growth in LATAM markets slowed in 3Q due to the region’s overall economic challenges, supply chain struggles, and power constraints. Although primary markets such as Querétaro, Mexico, experienced a surge in growth prior to 3Q, they are now experiencing power constraints and construction delays. Despite these difficulties, LATAM countries continue to commission large amounts of power in hopes of drawing further developments. Although AI is a driver in other global markets, LATAM will not likely be incapable of supporting AI implementation until 2025, and may have to do so in secondary markets. Looking forward, hyperscale growth will help LATAM’s overall industry development, though challenges with AI implementation could keep the region’s development behind others.
North America: Campus development continues to be a major driver for the North American market, with the region’s developers opting to purchase large plots of land up to thousands of acres for long-term project planning. Absorption remains high across the region, which reflects the demanding requirements for AI and cloud growth. However, the rising demand for space and decrease in vacancy has led to increased costs. To overcome these challenges, datacenterHawk projects North America will see a higher spend of speculative capital and a greater growth in its submarkets.
This real time market data can be accessed via datacenterHawk’s Insight Platform, featuring data center trends, activity, and pricing. datacenterHawk’s 4Q 2023 Market Analysis is expected to be released shortly after the quarter ends.
For more information, visit: https://www.datacenterhawk.com
To read the full 3Q 2023 Data Center Market Recap, click here.
datacenterHawk helps users see data center real estate across North America, Europe, and Asia Pacific with new clarity. Dive into supply, demand, and pricing trends instantly via their online platform or work their standardized data into your platform via API. Their team of experts ensures that all data on their platform is standardized and ready for your analysis. For more unique needs, you can engage datacenterHawk for consulting requirements. At the end of the day, datacenterHawk exists to help you make better decisions about data center real estate. Take their platform for a trial or contact them to see how they might be able to serve you.
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