By Tim Boreham
Publication Date: 2025-11-28 11:00:00
Data center operators are surfing the wave of the “industrial revolution” of AI. But it’s not all Chiko Rolls: expect a wipeout or two on the evolutionary journey. Image: Getty Images.
- By 2028, Australian data center capacity is expected to fall 48% short of demand
- D.C. developers are exploring “capital recycling” initiatives to fund next locations
- The evolution of AI is difficult to predict – but we can expect that we will need a lot more DC capacity
Global data center (DC) adoption is progressing apace and our ASX-listed exponents are at the forefront of the huge capital injection.
McKinsey & Co estimates that local DC capacity is 1.4 gigawatts and is expected to rise to 1.8 GW by 2028. The company predicts demand will rise to 3.5 GW – a gap of almost 50%.
According to CBRE Research, there is currently about 82 GW of capacity worldwide, with AI demand accounting for about half.
By 2030, the company forecasts capacity to increase to 219 GW, with KI predicting 156 GW (70%).
Developers have to spend trillions of…
