CBRE: Global data center supply critically lags demand across all regions; rental rates and construction costs accelerating.

Global data center supply continues to lag demand across all regions, according to CBRE analysis, creating a structural imbalance in the market despite substantial new capacity coming online. The supply deficit is driving up both rental rates and construction costs, presenting a tightening cost environment for operators and tenants.

The demand-supply gap persists even as the industry brings extraordinary new supply growth to market. This suggests demand is accelerating at a pace that outpaces even aggressive expansion efforts, creating sustained pressure on pricing across all geographies.

For the AI buildout, the mismatch signals persistent capex inflation for infrastructure expansion and rising operational costs for data center leasing. The universal nature of the shortage across regions suggests limited geographic arbitrage for cost relief, potentially concentrating demand in markets where new supply can be brought online fastest.