Source: https://www.areadevelopment.com/, Q3 2026
By: Jared Dubrowsky, Howden US

The explosive growth of artificial intelligence, cloud computing and digital infrastructure has fueled one of the largest industrial real estate development cycles in decades. Private equity-backed investment in U.S. data center deals reached $45.7 billion in 2025, the highest level in at least five years, according to S&P Global Market Intelligence.

With capital pouring into the sector, one of the biggest challenges facing many developers is finding sites that can actually be built. CBRE’s North America Data Center Trends report found that although primary-market supply increased 36% in 2025, the amount of capacity under construction declined for the first time since 2020, with planned projects facing permitting, zoning and power procurement delays. The U.S. Department of Energy’s 2026 National Transmission Needs Study similarly points to rapid load growth from data centers and other large industrial users as a driver of the need for additional transmission infrastructure. Read more.