Global Data Centre Hotspots: Growth Trends & Recruitment Insights

The global data centre market was valued at $347.64 billion in 2024 and is expected to reach $1,008.65 billion by 2034, expanding at a CAGR of 11.24%. Global data centre hotspots are emerging around the world, shaped by connectivity strength and sustainability initiatives. As infrastructure investments increase, securing skilled technicians, sustainability engineers, and integration specialists has become as important as the facilities themselves. 

In this article, we explore the 20 leading data centre hotspots across the globe and why strategic talent recruitment is crucial for growth and innovation. 

Contact our data centre executive search team to discover how we can connect your business with leading, senior-level talent. 

Top European Data Centre Hotspots 

London leads the EMEA region as its largest data centre market, accounting for almost half of Europe’s total Tier I supply and surpassing 1,000 MW of capacity in 2024. The city’s market dominance is driven by constant demand from hyperscalers and enterprise clients, which have been taking up vacancies quicker than they’ve been supplied in recent years. Global leaders are continuing to invest in the region, with new developments like Vantage’s West London campus in the pipeline. 

However, this rapid expansion is not without its challenges, one of which is how energy-intensive London’s data centres are. To tackle this, the Greater London Authority is implementing stricter regulations on planning applications with the aim of balancing growth with sustainability by encouraging low-carbon heat network integration. 

Frankfurt 

Frankfurt is a key hub in Europe’s data centre industry with 131 data centres, positioning it 1st in Germany and 4th across all of EMEA. The installed base capacity is expected to grow from 1,220 MW in 2024 to 1,960 MW by 2030, with the largest data centre, CyrusOne Frankfurt V, contributing 63 MW of this. 

A key aspect of this is DE-CIX Frankfurt, which is the world’s leading Internet Exchange, recently achieved a record data throughput of 17.09 terabits per second. The city’s exceptional connectivity and status as Europe's financial capital attracts many international businesses and financial institutions, driving strong demand for data centre capacity. 

Amsterdam 

Another European city leading the way in the data centre industry is Amsterdam, with the Dutch city currently ranking as the continent’s third-largest colocation market with over 500 MW of capacity. 

Data centre vacancy rates in the city are decreasing, which shows a growing demand as Amsterdam’s sustainable policies and strong tech economy appeal to global businesses. With more than 285 service providers, Amsterdam offers a thriving colocation ecosystem. 

Paris 

With vacancy rates dropping below 10% for the first time in 2024, Paris is becoming a key location in the data centre industry. The city hosts over 170 service providers and over 265 customers, supported by nearly 932,500 square feet of colocation space, largely driven by Digital Realty. Paris is particularly attractive for hyperscale developments, with companies like Data4 building campuses tailored for high-AI workloads. 

Its strong telecom ecosystem ensures low-latency performance, encouraging major cloud providers like Microsoft to make significant investments and making Paris a key hotspot for AI and cloud adoption across Europe. 

Dublin 

Dublin has become a global hyperscale facility hotspot, hosting just under 5% of the world’s hyperscale server farms. The city’s data centre market is expected to grow at a remarkable 17.11% CAGR through to 2028, driven by increasing demand for cloud and AI services. 

Tech giants such as Google, Meta, and Amazon have established major campuses there after being attracted by Ireland’s renewable energy incentives. Vantage Data Centers also recently unveiled plans for a €1 billion gas-powered facility in the region, showcasing the scale and ambition of the Irish data centre market. 

Top U.S. Data Centre Hotspots 

North Virginia 

North Virginia has the largest data centre market in the world, with 241 operational facilities and 126 currently under development, an inventory over twice as large as London’s. Its strong appeal comes from its proximity to the Pentagon and strong fibre connectivity. As AI adoption accelerates, demand for infrastructure is driving further growth, pushing the region’s capacity to around 2,600 MW. 

Northern Virginia’s dominance is expected to continue as digital transformation continues. However, power availability has become a major issue, leading to concerns about growth potentially slowing down. 

Dallas 

Dallas–Fort Worth (DFW) is a fast-growing data centre hub, home to over 150 facilities and more than 650 MW of commissioned power. In 2023, the region reported a record absorption of 386 MW as it appealed to both hyperscalers and colocation providers. 

Industry leaders QTS and CyrusOne are the two major providers in the area, while the Infomart carrier hotel serves as a key connectivity hub. DFW stands out for its lower power costs, fast power transmission timelines, and attractive tax incentives on electricity and equipment, making it an ideal location for data centre infrastructure. 

Silicon Valley 

With over 100 data centres and a long-standing presence of major cloud providers, the Silicon Valley region in Northern California benefits from strong network connectivity and a strategic location near tech hubs. Demand is driven by AI, cloud computing, and the growing needs of major tech companies with local headquarters. 

However, space and power constraints are increasingly becoming an issue, leading to rising costs and a slight shift toward more affordable locations. Despite this, Silicon Valley's leading infrastructure and local talent pool still make it a key data centre hotspot for high-performance workloads. 

California was highlighted as one of the leading U.S. states in our recent Industry Showdown; explore more on developments, growth, roles in demand, and practical approaches to combat talent challenges. 

New York and New Jersey 

The New York and New Jersey data centre region is a crucial gateway to global markets, offering over 805,000 square feet of colocation space and more than 55 MW of utility power. With 27 unique networks and exceptionally dense fibre infrastructure, the region provides ultra-low latency connections ideal for financial services and AI adoption, making it no surprise that industry leaders like Digital Realty and Equinix have facilities there. 

While high operational costs in New York City itself can present challenges, New Jersey continues to attract investment from organisations such as Nebius Group, which, in March 2025, announced a new AI-focused data centre with a capacity of up to 300 MW. 

Atlanta 

Atlanta is rapidly emerging as a major data centre market in the U.S., leading the entire nation in net absorption with an impressive 705.8 MW taken up in 2024. The city is home to several major facilities, including QTS’s Atlanta-Metro data centre, which is one of the largest in the world. Its growth is largely due to a reliable supply from Georgia Power and a major connectivity hub in downtown Atlanta. 

Data centre construction in Atlanta has increased significantly in recent years, with CBRE reporting a 76% increase by the middle of 2024 compared to the same period in 2023, which shows increased demand and investor confidence. 

Phoenix 

Phoenix’s total inventory has increased by 67% annually to reach 602.8 MW in 2024, making it an emerging data centre hub. The vacancy rate in the region has dropped to just 1.9%, showing strong demand and appeal that comes from its affordable power and large availability of land. This makes Phoenix ideal for developers looking to build cost-efficient and scalable infrastructure. 

Top APAC Data Centre Hotspots 

Singapore 

Singapore is one of Asia’s leading data centre hotspots, with around 106 facilities and over 1,200 cloud service providers. With its total capacity already exceeding 700 MW and over four times that in the pipeline, the market is set to reach $2.78 billion by 2033, growing at a CAGR of 12.1%. 

Significant investments are contributing to this, with an estimated $5.48 billion expected by 2029, especially near Central Singapore’s major business districts and advanced infrastructure facilities. Unlike most global hotspots, there’s a growing focus on smaller, high-value rack transactions rather than hyperscalers. 

Hong Kong 

Driven by its strategic location between China and other major global markets, Hong Kong data centres are expected to be valued at $1.73 billion by 2029, growing at a CAGR of 5.39% from 2025. With an estimated 53 colocation facilities and over 1,000 cloud service providers, the city plays a key role in the digital infrastructure of the APAC region. 

Tier 4 data centres are particularly in demand, currently achieving an 83% occupancy rate as fast-growing businesses identify the region as an ideal data centre hotspot. 

Tokyo 

Tokyo is a key location for Asian data centres, ranking as Japan’s largest market and second largest overall in the APAC region. By the of end 2024, the Greater Tokyo area had 1,136 MW of operational capacity, with another 223 MW under construction and a huge 1,568 MW planned to meet high demand. The city hosts 122 data centres run by 32 providers, including the leading Vantage Tokyo facility. 

Reasons for Tokyo data centres being so popular include the city’s status as a global financial and business hub and its vast urban population. Japan’s reliable power grid and strong government tech support also make Tokyo an attractive location for hyperscalers expanding across Asia. 

Sydney 

The Sydney data centre market is the largest in Australia and the third largest in the whole APAC region. With 85 facilities run by 29 providers, it was valued at $1.5 billion in 2023 and is expected to grow at a 16% CAGR through to 2028. 

The city’s coastal location offers strong international connectivity via undersea cables, making it an attractive hub for data centres and businesses that require low-latency global communication, such as NextDC and Rackspace. Tier 3 facilities are most common in Sydney, as they appeal to organisations looking for strong reliability without the costs of Tier 4 centres. 

Mumbai 

Mumbai is the main hotspot of India’s data centre industry, leading the nation in both colocation capacity and hyperscale developments. The city hosts 38 of India’s 153 data centres, with much of this activity centred around the satellite city of Navi Mumbai, which has a total capacity of 289 MW and over 3.6 million square feet of operational space. 

The reason Mumbai is a strong data centre hub is its access to international subsea cable landing points that ensure strong global connectivity. The city also has a strong business scene and improving infrastructure, attracting interest from global leaders like Google and Microsoft. With growing cloud adoption and digital transformation across India, Mumbai’s role as a data centre hotspot is set to strengthen further in the future.  

Malaysia 

The Malaysian data centre market is one of the fastest growing globally, with it projected to grow by $6.24 billion by 2029 at a CAGR of 22.7%. The country’s appeal is increasing due to its strategic location between major tech markets like Singapore and Indonesia, offering an affordable alternative for large-scale developments. 

Hyperscalers are particularly common in Malaysia due to the vast amount of available land and scalable infrastructure, with the future IT load capacity expected to hit 1,300 MW, with over 7.5 million square feet of raised floor space and 380,000 racks planned. 

Emerging Data Centre Hotspots 

Saudi Arabia 

Saudi Arabia is quickly becoming a key data centre hotspot in the Middle East, with the market predicted to grow from $1.33 billion in 2024 to $3.9 billion by 2030, a CAGR of 19.6%. This demand is driven by rapid digital transformation and the growth of e-commerce across Saudi Arabia, with key cities like Riyadh, Dammam, and Jeddah leading the way in capacity development. 

Major investment is contributing to this, including Alfanar Global Development’s $1.4 billion commitment to build four new facilities. There is also a partnership between NEOM and DataVolt that aims to build a net-zero AI data centre, showing Saudi Arabia’s ambitions to combine tech innovation with sustainability as it seeks alternatives to oil. 

UAE 

The UAE, particularly in Abu Dhabi and Dubai, is also becoming a digital infrastructure powerhouse in the Middle East, with the data centre market expected to grow from $1.26 billion in 2024 to $3.33 billion by 2030, a CAGR of 17.58%. 

Similarly to Saudi Arabia, the main drive behind this growth is the nation’s push toward digital transformation and smart city development. With 27 submarine cable systems and more underway, the UAE is ideally located in the gateway between the East and the West. 

Explore our article on job opportunities in the UAE's smart city revolution. 

South America 

South America’s data centre market is undergoing a major transformation, with revenue expected to grow from $11.78 billion in 2025 to $14.71 billion by 2029, a CAGR of 5.71%. This growth is driven by increasing demand for cloud services, high digital consumption, and stricter government regulations around data security, with companies like Scala Data Centers and Ascenty scaling across the continent. 

Brazil leads the continent, making up around 40% of total investment, while countries like Chile, Colombia, and Argentina are also growing rapidly. Connectivity is strengthening too, with around 60 submarine cable systems currently operational and more in development, positioning South America as an emerging data centre market. 

The Growing Challenges of Data Centre Recruitment 

Across these growing data centre global hotspots, the race to build and operate world-class facilities has put immense pressure on recruitment. A 2023 Uptime Institute report found that 58% of operators struggle to fill vacant roles, which could cost the industry over $449.7 billion. Demand is highest for data centre technicians, sustainability engineers, and software integration specialists as providers scale up AI and cloud operations. 

Senior professionals in the industry are retiring, which further escalates data centre skills gaps. To stay ahead, many organisations are investing in upskilling programmes and exploring more diverse talent pools to combat talent shortages. As digital transformation drives strong demand for data centres, talent acquisition is crucial for maintaining industry growth and innovation. 

Data Centre Recruitment Experts at CSG Talent 

Securing senior data centre talent for your organisation is more important than ever. As global executive search specialists with a dedicated data centre team, CSG Talent leverages deep industry knowledge and a global network to pair your business with expert talent. 

Contact CSG Talent today to learn how our tailored hiring strategies can build a workforce ready to drive your future growth and innovation. 

For information on how CSG Talent supports businesses in the data centre industry with their recruitment strategies, explore our success stories.