Data center demand “could be larger than we’re prepared for,” with vacancy entering record lows of two percent, and global AI usage surging, according to a report from Newmark.
Newmark’s 2026 Data Center Market Outlook report showed that, in a scenario where AI usage reaches levels similar to Internet or smartphone adoption, an additional 250GW of capacity would be required, far exceeding currently planned AI-data center capacity.
While conceding that this is an “aggressive but still plausible scenario,” the report argued that this prediction doesn’t even account for increases in enterprise workloads, Edge compute, or AI training, which Newmark said is forecast to grow by 3x annually through 2030.
“This scenario leaves the market in a catch-22: the binding constraint on mass AI adoption is new capacity coming online, and the binding constraint on new capacity is power,” the report said, “In the meantime, hyperscalers, developers, and their partners continue to pour capital into the buildout at an accelerating pace, considering it an ‘existential investment.’ As constraints sharpen and demand rises, the goalposts for spending continue to move higher.”
Various firms and organizations have tried to put an estimate on the amount of investment required to meet rapidly growing data center demand, with some suggesting staggering sums of up to $3 trillion over the next five years.
