Apac data centre capacity to double by 2030, AI boom creating 'generational shift' in power demand: JLL

Data centre capacity in Asia Pacific (Apac) is projected to nearly double by 2020, as AI-fuelled expansion reverses a decades-long trend of stable or declining electricity demand, according to research by JLL.

Data compiled by the real estate consultancy shows that Apac data centre capacity will jump from 32 gigawatts (GW) to 57 GW by 2030. Globally, data centre capacity is expected to hit 200GW by then, driven largely by hyperscale cloud expansion and AI demand.

The AI and data centre boom has resulted in a “generational shift in power demand”, said Steven Jack, the firm’s head of energy and infrastructure for Europe, the Middle East and Africa, in a Sept 8 release. “Utilities that were forecasting modest growth are now grappling with figures nearly double their previous estimates.”

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That shift has decisively reshaped the data centre landscape, with grid infrastructure now emerging as the primary constraint. “Power demand is rising faster than grids were built to handle,” commented Matt Eastwick, JLL’s US group head and senior managing director for energy and infrastructure.

Amid a decentralised influx of new renewable energy sources, existing transmission infrastructure — originally designed for large, centralised power stations — has struggled to cope, resulting in significant grid congestion across the globe.

Consequently, grid access is increasingly driving decision-making for developers, data centre operators, energy firms, and tech companies. “For any energy developer, without a grid connection, you don't have a project,” Jack explained. “For investors, this grid congestion translates directly into risk, but it also creates a scarcity premium for assets that provide or secure grid access.”

Against this backdrop, hyperscalers have announced US$200 billion ($253 billion) in infrastructure spending for 2026, up 51% from 2025. However, despite the record capital expenditure, interconnection queues for new renewable projects now extend to four years or more in some regions, with certain areas forced to pause new connections entirely, according to JLL.

The constraints are creating new opportunities in related markets. One such opportunity lies in battery energy storage systems (BESS), which JLL posits will play an increasingly important role in managing limited grid access and renewable energy intermittency. “They act as shock absorbers for constrained grids, charging when power is cheap and abundant, then discharging when demand and price are high,” said Eastwick.

At the same time, grid access challenges are prompting industry players to become direct participants in the energy market, with some technology companies opting to outright purchase operating renewable assets to guarantee power supply, according to JLL.

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In any case, securing power supply is now top of mind for data centre investors in Apac, said James Cameron, JLL’s head of energy and infrastructure for the region. "In liberalised markets in Apac, such as Australia, India, Japan and the Philippines, status and location of grid connection is the first question for investors and has the largest valuation impact for development assets.”

While data centre build-out still outpaces grid planning in several Apac markets, Cameron expects regional dynamics and grid access challenges to drive new partnership models. “While the solution will differ depending on circumstances, it is clear we will see many more partnership opportunities and innovative solutions between data centre and energy clients across the region."