As AI use continues to expand, demand for data centers continues to grow at a rapid rate.

Big data means big business for many industries in the United States as well as across the globe, as data-heavy activities take hold. Thanks to a wealth of artificial intelligence (AI) applications expanding across industries, data center demand among institutional and commercial facilities is at an all-time high.

According to JLL’s 2025 Data Center Outlook, AI data center demand is expected to build significant momentum in 2025, with the global data center market expanding at a 15 percent compound annual growth rate (CAGR) through 2027. Of course, with this accelerated expansion comes numerous challenges as the continuous emergence of new technologies may cause power constraints and liquid cooling infrastructure issues.

Dylan Griffith, data center operations director at JLL,a global commercial real estate and investment management company, joined the company in September 2023 and has since gained oversite of over 20 enterprise data centers, spanning across several accounts. In total, these data centers account to more than 2 million square feet and over 50 megawatts (MW) of critical power.

“Some of these data centers have been managed by JLL for over 20 years, and I’m grateful to be a part of the effort to further strengthen those relationships by providing insight into the industry best practices,” Griffith says.

Most recently, JLL Capital Markets arranged over $1.2 billion in construction financing for The BlackChamber Group, a data center developer, to help construct four data center campuses across Northern Virginia. According to JLL, “Northern Virginia is the largest data center market in the world, comprising more than 4.6 gigawatts (GWs) of power capacity as of the first half of 2024. In 2024, Northern Virginia saw more than 1.3 GWs of absorption, ending the year with a vacancy rate of just 0.4 percent. Currently, in Northern Virginia there is more than 5.8 GWs of planned data center development.”

Challenges and opportunities

As the data center industry is facing a transformative era, Griffith says there are key challenges that need to be addressed within the data center landscape.

Talent management. As the data center industry continues its rapid upward ascent, staffing and talent management has become one of the most arduous tasks for data center managers. To address these challenges, Griffith says it’s crucial to develop sustainable programs for employee development and training, including qualification programs, technical development training, and more.

“It’s also important to create clear succession plans to mitigate risks associated with potential leadership attrition,” Griffith says. “And implement roadmaps for career paths, particularly for high-potential employees.”

JLL has directly addressed theses talent challenges by attracting new, skilled talent for data center operations and the company has partnered with Nomad Futurist Foundation, a nonprofit organization that partners with education providers, NGOs and other organizations to inspire and empower younger generations to explore underlying digital technologies. This partnership provides free-of-charge technical training to qualified students and young professionals, globally. As Griffith explains, this initiative highlights how JLL views the importance of addressing the need to develop talent to operate the critical infrastructure at a rate that keeps pace with the industry demand and growth.

Water-saving initiatives. With its plethora of data centers dotting the world, JLL has a series of goals and strategies around water-saving initiatives within these centers, as liquid cooling has become a cornerstone of data center functionality. The need for liquid cooling systems has resulted in a new method of innovation.

“In data centers that use traditional air cooling and chilled water systems, water usage efficiency can be challenging to manage,” Griffith says. “It’s important that you establish a relationship with your water treatment provider to implement a treatment program and install blow down meters to accurately track the amount of water usage in real time to identify potential anomalies.”

It could also be as easy as installing water-efficient fixtures throughout your building, as it’s amazing the amount of water savings that can be captured by low-flow faucets, toilets, and more. In addition, many facilities are using a hybrid approach, combining liquid cooling and air cooling as a viable solution.

However, as Griffith points out, as data centers continue to advance and the shift to AI and higher density requirements continue to grow, JLL is seeing a steady trend of clients investing in immersion cooling.

“This type of liquid cooling uses a method of submerging servers in a dielectric liquid allowing a more efficient heat transfer while also reducing noise, water/energy usage, and the environmental impact comparatively to that of the traditional air conditioning methods,” Griffith says. “Ultimately, immersion cooling eliminates the need for air conditioning inside the data center and is a stride in the right direction for data centers to build a more sustainable product for the future.”

Immersion cooling does face some challenges related to liquid quality, reliability and maintenance, as well as structural design of facilities due to weight considerations of the cooling baths. Because of this, data center operators may turn to smaller immersion tubs, which weigh less, and can be integrated into existing facilities without requiring significant renovations to facilities.

Maura Keller is a freelance writer based in Plymouth, Minnesota. 

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