Data center REIT CEO says real estate ‘not in an oversupply state’

January 13, 2026

TL;DR

Hyperscalers are announcing numerous data center projects, leading to concerns about overbuilding and risky financing.
Andy Power, CEO of Digital Realty, states that based on real customer demand and long-term contracts, the sector is not in an oversupply state.
JLL forecasts global data center capacity to nearly double from 103 GW to 200 GW by 2030, driven by artificial intelligence.
AI workloads are predicted to represent half of all data center capacity by 2030, up from approximately 25% in 2025.
JLL predicts the sector will require up to $3 trillion in investment over the next five years, calling it an infrastructure supercycle.
Hyperscalers are allocating $1 trillion for data center spend between 2024 and 2026, while supply constraints and grid connection delays create development challenges.
Power believes the real estate side of the AI arms race is less at risk, with demand well outpacing supply and Digital Realty experiencing record-low vacancies.
Concerns about tenant creditworthiness, particularly regarding companies like Oracle dealing with AI startups like ChatGPT, have been raised.
Power notes that companies involved, including Oracle, have significant businesses outside of AI, and most wish to own their real estate.

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