Navigating Global Growth in Data Centres - Riding the AI Wave
Data centre dealmaking continued its rapid rise in 2024 and the fundamentals of the data centre market remain robust for the year ahead, largely driven by increasing AI demand.
According to TMT Finance analysis, the average valuation of the global data centre market is expected to be around USD300 billion in 2024, with a projected average compound annual growth rate (CAGR) of approximately 10% over the next five years.
One of the key findings raised by respondents was the growing need for infrastructure that can support AI-driven applications and the increasingly critical role data centres play in enabling advanced digital services. Other concerns included energy supply, grid connectivity, power availability, infrastructure reliability and ESG considerations.
Respondents identified the biggest drivers of data centre demand as:
- Adoption of GenAI
- Ongoing cloud migration
- General consumer demand for data capacity
- Shift from on-site to off-site colocation/public data centres
- Data sovereignty and geopolitical factors
Navigating Global Growth in Data Centres - Riding the AI Wave report - at a glance
“Demand will continue to grow. The biggest task for data centre operators is to grow sustainably.”
- Vincent Gerritsen, Head of UK and Europe at Morrison
"We’re not near peak growth. There is hype around AI and, although some business models for AI applications are unproven, it’s hard to bet against further increases in processing demand and ability when you consider chip advances."
- Alex Thomas, Head of European Communications Infrastructure, RBC Capital Markets
