Edge Data Center Growth in Global Hotspots
Published on July 11, 2025,
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Global Hotspots Driving Edge Data Center Growth
As digital transformation accelerates and AI workloads surge, the demand for data center infrastructure is reaching unprecedented levels. However, this growth is far from evenly distributed. A recent analysis by CBRE, a global real estate and investment firm, highlights how edge data center growth is being shaped by regional dynamics, particularly the availability of power and land.
North America: Power Constraints Shift the Map
North America remains at the forefront of global data center expansion, with a staggering 43% year-over-year increase in inventory. Yet, this rapid growth comes with a caveat—power availability is becoming a critical bottleneck.
Northern Virginia, long considered the epicenter of global data center activity, is now facing significant power constraints. As a result, secondary markets like Atlanta and Phoenix are rising stars. These cities have surpassed traditional hubs like Dallas and Silicon Valley in terms of new development, thanks to more accessible power and land resources.
This shift is not just about capacity—it's about strategy. Developers are now prioritizing locations where they can scale operations, even if it means moving away from traditional tech corridors.
Europe: Secondary Markets Step Up
Europe’s major data center markets—Frankfurt, London, Amsterdam, and Paris (collectively known as FLAP)—are grappling with severe power shortages. These constraints are slowing down the delivery of new supply and forcing operators to look elsewhere.
Enter the secondary markets: Berlin, Milan, Madrid, Brussels, and Zurich. These cities are emerging as viable alternatives, offering the power and land needed for large-scale deployments. This trend is a clear indicator of how edge data center growth is being driven by infrastructure availability rather than just proximity to users.
Asia-Pacific: Poised to Lead by 2030
The Asia-Pacific region is on track to surpass the United States as the largest colocation market by 2030. Tokyo currently leads in leasing activity, but other cities are quickly gaining ground.
Sydney and Melbourne are seeing increased investment, while Johor, Malaysia, is emerging as a key player due to its proximity to Singapore—a market constrained by both land and power. Johor’s rise is a textbook example of how regional limitations can catalyze edge data center growth in neighboring areas.
Latin America: Strategic but Constrained
Latin America is also experiencing a surge in data center development. Cities like São Paulo, Santiago, and Querétaro are reporting near-record-low vacancy rates, underscoring their growing strategic importance.
However, the region faces its own set of challenges. Energy restrictions and infrastructure limitations are slowing the pace of development. Still, the demand is strong enough to keep these markets on the radar for future expansion.
The Shift: From Latency to Scalability
Traditionally, data center site selection was driven by the need to minimize latency—placing infrastructure close to end users. But that narrative is changing. According to CBRE, “It’s no longer about latency—it’s about where you can scale.”
This shift has profound implications for edge data center growth. As power and land become scarce in primary markets, hyperscalers and developers are turning to secondary and even tertiary locations. These new sites are not just stopgaps—they are becoming integral parts of a distributed, scalable edge network.
For example, building a data center in Des Moines or Richmond may solve a power availability issue, but it also creates a low-latency compute hub for the surrounding region. This dual benefit is accelerating the geographic spread of infrastructure, effectively redefining what we mean by "the edge."
The Future of Edge is Energy-Driven
The evolution of edge computing is no longer solely tied to application demand. It is now intrinsically linked to the energy grid and land availability. This new reality is reshaping the global data center landscape and driving edge data center growth in unexpected places.
As we look ahead, the most successful strategies will be those that align technological needs with energy realities. The edge is no longer just a concept—it's a rapidly forming network of strategically placed, power-optimized data centers that are redefining the future of digital infrastructure.
