Chart of the month: Data centres, beyond the AI noise

Data-centre infrastructure offers a more tangible way to invest in the AI theme than trying to forecast which models or hyperscalers will win.

• Average asking rents in primary US markets rose from around $120 to $196 per kilowatt per month between 2021 and 2025, while vacancy fell from 5.0% to 1.4%.
• AI and cloud computing require land, power, grid connections and cooling, with electricity access increasingly the binding constraint rather than floor space.
• During H1 2026, 5.3GW of new leases were signed across leading US primary and secondary markets, around 60% above the 2025 full-year total.
• Supply remains constrained by power availability, water and local opposition, and Green Street forecasts rental growth of about 5% a year in leading US and European markets from 2026 to 2030.
• Development yields are estimated at 10% to 13%, while shorter colocation leases could benefit from higher re-leasing rates if asking rents continue to rise.

Takeaway: L&G maintains a high-conviction view on data centres, especially in private markets, although the investment case depends on sustained demand and the article warns that AI forecasts remain uncertain.