As we enter 2026, the global data center industry is at a critical turning point. Historic absorption rates over the past year have been driven by the growing demand for AI infrastructure. In this episode of the Data Center Hawk podcast, Founder and CEO David Liggitt joins regional leaders Ed Socia (North America), David Sandars (EMEA), Dedi Iskandar (APAC), and Steve Sasse (Latin America) to analyze key trends and predict how power dynamics, emerging markets, and hyperscale strategies will shape the industry in the year ahead.

North America leads in data center development, but the growth is shifting geographically. Regional Director Ed Socia highlights a movement toward nontraditional markets like North Dakota, Wyoming, and Missouri, driven by available power and the need to avoid community pushback. AI providers are building large, master-planned campuses in these areas.

Regions like West Texas are seeing plans for massive 1-gigawatt projects, although network latency keeps traditional hubs like Chicago and Northwest Indiana relevant. Additionally, smaller enterprise demand (20-50MW) is carving a niche alongside hyperscale developments, signaling diverse growth within the market.

In Europe, the Middle East, and Africa, diversification is the name of the game. Regional Director David Sandars notes a slowdown in speculative building, with some projects delayed until 2026 or 2027. Interest is expanding beyond traditional FLAP-D markets to areas like Zaragoza, Spain, and parts of Eastern Europe, including Romania, Hungary, and the Czech Republic.

The Middle East is emerging as a major AI hub, with plans for multi-gigawatt campuses. Its strategic location between Europe and Asia is attracting investments not only from western hyperscalers but also from countries like South Korea, keen to support their tech industries.

The Asia-Pacific market has doubled in size from 5GW to 10GW in just two years. Regional Director Dedi Iskandar highlights that while Japan and Australia remain key hubs, power constraints in major cities like Tokyo are pushing developments into tier-two markets.

Johor in Southeast Asia has quickly become a 2GW market, while India’s rapid growth positions it as a future leader, potentially surpassing Tokyo. Unlike Europe’s cautious pace, APAC’s AI companies demand fast delivery, often seeking 100MW+ capacities within just 3 to 6 months. Emerging hotspots like Melbourne, Chennai, Bangkok, and Vietnam are reaping the benefits, with governments offering incentives to attract digital infrastructure.

In Latin America, Chinese cloud operators such as Tencent, Alibaba, and Huawei have stepped in as US providers focus more domestically. Regional Director Steve Sasse notes expansion across Mexico, Brazil, Chile, and Peru.

Looking ahead, the region is leveraging its renewable energy resources to attract AI-focused hyperscale investments. Brazil leads the market, accounting for nearly 40% of the economic base and introducing legislation to reduce GPU chip import taxes. Meanwhile, Argentina is gaining attention for its vast natural gas reserves, positioning itself as a potential dark horse for on-site power generation.

The global demand for data center capacity shows no sign of slowing, but how that demand is met varies greatly by region. From gigawatt-scale campuses in West Texas and AI hubs in the Middle East to APAC’s rapid tier-two growth and LATAM’s renewable energy strategies, the industry is evolving to address power constraints and shifting needs.

For investors and IT professionals, understanding these regional trends will be critical to navigating and capitalizing on the next wave of digital infrastructure growth in 2026.

North America: The Rise of Nontraditional MarketsEMEA: Capacity Challenges Amid AI GrowthAsia-Pacific: Tier-Two Markets Take OffLatin America: Renewable Power and Chinese Cloud ExpansionConclusion