Data centers account for nearly a third of global real estate investment in 2025 – report

Data centers accounted for 31 percent of total private real estate funding raised globally between the first and third quarter of 2025, up from an average of 15 percent since 2020, a report from investment management firm Colliers has said.

Colliers’ 2026 Global Investor Outlook cited this figure from Pere Research, whose Q3 2025 fundraising report showed that total funding during the period sat at $17.9 billion. According to Pere, two of the top 10 funds closed in 2025 were data center investment vehicles: the $7bn Blue Owl Digital Infrastructure Fund III and the $3.64bn Principal Data Center Growth & Income Fund.

In its own report, Colliers said there was a sharp rise in capital allocations to data centers in 2025, with the US remaining the largest and most mature market.

However, the investment management firm noted that EMEA is growing rapidly in data center investment, with markets such as Germany, the Netherlands, and the UK attracting significant investment due to their connectivity, regulatory frameworks, and proximity to major tech hubs.

Colliers said data centers are experiencing “unprecedented” levels of fundraising, with the sector now displacing traditional investment pillars in real estate, such as the industrial, logistics, and office sectors.

Despite record investment, there remain significant challenges in power availability, land constraints, and regulatory complexity, Colliers said.

Investors are becoming more focused on infrastructure-linked assets, considering energy availability and grid capacity as critical factors in site selection. Colliers noted that demand in Frankfurt, London, and Amsterdam (the FLA in the eponymous FLAPD markets) was strong, but new developments suffer from power constraints and planning hurdles.

This is resulting in investors looking at secondary and emerging locations where governments are making positive digital infrastructure and energy investments. Colliers identifies this by increased portfolio activity in Southern and Eastern Europe, citing significant deals in Slovakia and Poland, though the investment firm doesn’t note specific data center investment in these regions.

“Data centers are attracting serious capital,” said Gonzalo Martín, head of Data Centers Capital Markets, EMEA. “But development is not straightforward. Power availability, land constraints, and regulatory complexity mean data center investors need deep local insight and long-term strategies.”

Lottie Tollman, head of Data Centers Advisory, EMEA, added: “Occupiers are seeking data center solutions that balance resilience, sustainability, and speed to market. Collaboration between operators, landlords, and investors is vital to meet evolving requirements and unlock long-term value.”