Global data center capacity could reach 200 gigawatts by 2030, nearly doubling in just five years, according to an outlook from real estate services firm JLL. Such rapid growth would require an estimated $3 trillion of investment, including in real estate and IT equipment.
But the boom isn’t inevitable. Data center developers face a number of risks, including grid limitations, construction delays, and community opposition. In 2025, about 57% of projects had construction delays of three months or more, JLL found, largely due to shortages of chips and other IT equipment amid a manufacturing slowdown. It also takes more than four years to get a grid connection in the top data center markets.
To avert grid bottlenecks, hyperscalers are increasingly pursuing behind-the-meter power solutions and colocated battery storage to power up data centers fast. Gas will also continue to play a role; demand is already soaring, causing long delays and high prices for turbines, even as some of the largest data center tenants are averse to fossil fuels. Sites that don’t have secured power “will increasingly be stranded, regardless of zoning or demand,” the firm said.
Despite the risks, JLL said data center real estate assets remain strong. Some 97% of sites were occupied at the end of 2025 and 77% of all projects under construction already have committed tenants. Leases are often for 10 years or more, with protections for landlords in case of a default.
Speed-to-power push benefits battery storage, solar
The scramble for firm, fast power will continue to dictate where data centers are sited, especially because some energy analysts predict capacity shortfalls as soon as 2028 in parts of the U.S., Europe, and Asia.
The looming crunch led some government officials in 2025 to implement de facto “bring your own power” mandates for large data centers, including in Texas and Dublin, Ireland. Texas Gov. Greg Abbott in June signed a law that allows ERCOT, with notice, to shut off data centers and other large energy users during grid emergencies like extreme weather. In Dublin, regulators lifted a ban on new data center grid connections in December after issuing new rules that require facilities to install enough generation to meet 100% of its demand and provide backup power to the grid when needed.
Meanwhile, there’s growing scrutiny of data centers’ sustainability credentials, including whether they use renewable energy and limit water use.
Those trends — combined with the falling costs of renewable energy — will continue to be a boon for systems that pair battery storage with solar power. Globally, renewables are expected to outcompete fossil fuels on cost across all major regions, JLL found.
“As a result of the attractive cost profile and sustainability benefits, solar-plus-storage will become a key component of global data center energy strategies by 2030,” JLL said. “While some of this energy harvesting will be colocated with data center facilities, much of the energy infrastructure will be installed off-site.”
The global average price of battery storage is set to fall below $90 per megawatt-hour this year, JLL said. Solar remains the cheapest source of energy and is forecasted to drop below $30 per MWh by 2035 due to efficiency gains. By 2030, solar is projected to account for 64% of the world’s renewable energy capacity.
“This scale matters as it defines where data center operators can secure long-term, high-volume PPAs and on-site generation opportunities,” JLL said.
Local opposition
Aside from securing enough power, hyperscalers are also struggling to secure support from local residents.
Community resistance “has resulted in a significant number of delayed or canceled projects globally, with the emergence of many organized activist groups,” JLL said. In 2025, Google and Amazon withdrew plans for data centers Indiana and Virginia, respectively, after local residents raised concerns about utility costs, water availability, and changes to rural landscapes.
JLL said part of the problem is that hyperscalers typically don’t start community consultations until a project is already six or even 18 months into the process — after key decisions are made.
“To close the acceptance gap, the industry must shift from reactive consultation to proactive co-creation,” the firm said. “This can be accomplished with up to 24-month predevelopment engagement timelines and benefit-sharing agreements.”
