The Impact of AI Democratisation on Global Colocation Capacity Demand: A JLL Report

The rise of artificial intelligence (AI) technologies is reshaping the landscape of datacentres worldwide. According to a recent report by JLL, the democratisation of AI is driving a surge in global demand for colocation capacity, forcing datacentre operators to rethink their strategies for building and running facilities.

The report predicts that the adoption of AI will lead to a significant increase in datacentre storage capacities, from 10.1ZB in 2023 to 21ZB by 2027. This exponential growth in data storage requirements is pushing operators to address power challenges and the need for sustainable energy solutions. Strategic site selection is becoming crucial to ensure operational scalability and meet environmental goals in the face of increasing demand.

As the datacentre industry grapples with these challenges, the physical footprint of facilities is also evolving. New datacentre builds are now reaching capacities of 100MW or more, compared to less than 10MW a decade ago. The emergence of generative AI (GenAI) is further complicating the situation, as specialised datacentres designed to accommodate AI workloads differ significantly from traditional facilities.

AI workloads are known to be energy-intensive, prompting operators to consider how to balance the energy needs of their facilities with sustainability strategies. The shift towards liquid cooling methods, as opposed to traditional air-based cooling, is one example of how operators are adapting to the changing landscape of datacentres.

The report highlights the importance of increasing efficiency and collaborating with local governments to find sustainable energy sources to support datacentre needs. It also calls for governments to invest in upgrading electricity grids to meet the growing demand for power in the digital economy.

In conclusion, the rise of generative AI is driving the need for specialised and redesigned datacentres, presenting both opportunities and challenges for commercial real estate leaders in the datacentre sector. Those who can provide sustainable computing power will be well-positioned to thrive in the data-intense digital economy.