Power availability is overtaking customer demand as the decisive factor shaping global data center development, pushing more projects beyond established hubs and into secondary markets, new research reveals.. According to a report from DCByte, the global data center index evaluates markets through three lenses: demand (contracted capacity), delivery (under-construction and committed capacity), and depth (operational inventory).
Demand accounts for 40% of the score, delivery for 35%, and depth for 25%.. Ashburn, Virginia, led the Americas ranking; Johor, Malaysia, topped Asia-Pacific; and London ranked first in Europe, the Middle East, and Africa.. “Power availability has become the primary factor determining both where data centers are built and whether announced projects proceed on schedule,” Alexandra Desseyn, Americas research manager at DCByte, told Data Center Knowledge..
Established Hubs Face Delivery Limits. Major data center hubs retain key advantages, including connectivity, cloud availability zones, and mature customer ecosystems. However, the report highlights that grid queues, land scarcity, and regulatory pressure are increasingly hindering the conversion of demand into operational capacity..
Related:Emerging Data Center Markets: Key Locations to Watch in 2026. Ashburn remains the center of the world’s largest data center market, with 5.6 GW of live capacity and another 15 GW in its pipeline as of the first quarter. Yet grid connections can take between five and seven years, while development is spreading into Prince William, Culpeper, and Spotsylvania counties..
Similar pressures are emerging elsewhere internationally, with Tokyo facing power connection timelines of up to a decade, while Dublin and Amsterdam have been classified as constrained core markets. In those locations, demand remains strong, but power, regulation, and community resistance limit delivery..
“In many primary markets, grid-connection timeframes now extend several years, meaning suitable land without a credible route to power has limited development value,” Desseyn said.. Secondary Markets Gain Ground. DCByte’s future growth rankings show investment shifting toward markets with more flexible development conditions.
Pittsburgh, Charlotte, and Austin led the Americas list, while Kuala Lumpur, Bangkok, and Jakarta topped the APAC list. Zaragoza, Milan, and Berlin headed the EMEA ranking.. Johor exemplifies how rapidly this shift can occur, with the Malaysian market growing from less than 10 MW five years ago to approximately 1 GW within four years, transforming from a Singapore spillover location into APAC’s leading emerging growth market..
Related:New Data Center Developments: August 2026. Desseyn noted that Tennessee, West Texas, and locations beyond Northern Virginia’s established clusters are attracting greater attention in North America.. Portugal, Spain, and Nordic locations offer opportunities in Europe, while Johor, Batam, and secondary Japanese markets are positioned for further growth in APAC..
Power Means More Than Supply. The report indicated developers must look beyond a market’s total electricity generation. Transmission capacity, substation availability, interconnection queues, and staged energization all determine whether power can reach a site within a commercially viable timeframe..
“Operators are favoring jurisdictions with clear planning frameworks, supportive local governments and an established process for accommodating large energy users,” Desseyn said.. She noted where policies remain unsettled, or community opposition is strong, projects are more likely to be redesigned, delayed or redirected to another market..
Long lead times for transformers, switchgear, and gas turbines add further delivery risks. Operators must also consider fiber diversity, water, construction labor and whether facilities can support liquid cooling and AI rack densities approaching or exceeding 100 kW.. Related:Virginia Report Finds Groundwater Running Dry for New Data Centers.
Meanwhile, planning and community acceptance are becoming equally important as authorities scrutinize resource consumption, incentives, environmental effects and permanent job creation.. Ultimately, Desseyn said, the next investment cycle will favor markets that can demonstrate delivery certainty..
“The winning regions will not necessarily be those offering the cheapest land or electricity, but those able to provide a credible and coordinated path through power procurement, planning, construction and community approval,” she explained.
