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Data Center Capital Markets Market Overview H1 2022

October 12, 2022 6 Minute Read

Data Center

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Global Data Center Market Overview

Data center investment remained robust in the first half of 2022, while raising capital for digital infrastructure accelerated. Sector fundamentals continue to improve and attract new investors to the maturing asset class. Scarcity of asset- and entity-level opportunities, coupled with increased allocations, has resulted in a more competitive environment globally. In response, several investors are forming new platforms to pursue the ever-growing demand for hyperscale data facilities.

In the second quarter, global market volatility delayed transactions and price discovery for several offerings. Despite inflation and rising interest rates, investors still provided ample liquidity, with several marquee transactions closing in the first half of the year.

Supply chain delays, land scarcity and difficulty procuring power have lengthened delivery timelines for new development in several Tier I markets. While record-setting hyperscale demand has produced historically low vacancy rates across Tier I markets, power shortages have prompted developers and hyperscalers to expand into Tier II markets.

Recessionary concerns and higher interest rates notwithstanding, investor interest in data centers is expected to remain strong, given the underlying fundamentals. Compared to other asset types, data centers benefit from increased allocations from new and existing investors, providing ample liquidity for a competitive investor landscape.

Regional Market Overviews

North America

H1 2022 commenced with record M&A activity, most notably KKR and Global Infrastructure Partners’ $15 billion acquisition of CyrusOne. With investor interest at an all-time high, capitalization rates at record lows and unprecedented levels of new tenant demand, early signs pointed to a banner year for investment transaction volume. By the start of the second quarter, however, volatility in the debt market delayed many anticipated new offerings. Rising interest rates and inflation concerns impacted price discovery, and market conditions moved in favor of longer-term, lower-leverage investors.
Investor interest and capital allocation remained robust, providing ample liquidity for market transactions. In North America, $2.6 billion of data center assets sales closed during H1 2022, a transaction volume consistent with prior years. The number of transactions, however, was down year over year, with a handful of large sales making up most of the total volume.

As record hyperscale demand continues, CBRE anticipates an uptick in partial-interest trades and forward sales of new construction. Rising interest rates are likely to fuel sale leasebacks for enterprises eager to raise capital.
Investor interest in North American data centers remained robust, providing ample liquidity for market transactions, despite interest rate and inflationary concerns. Record tenant demand and positive rental growth support positive sector fundamentals.
Kristina MetzgerLeader, CBRE Data Center Capital Markets, North America


  • GI Partners acquired a stabilized turnkey data center in Sterling, Virginia, from Sentinel Data Centers.
  • Databank acquired four data centers in Houston, Texas, from CyrusOne.
  • Blackstone acquired three stabilized powered shells in Sterling, Virginia, from EdgeCore.
  • Iron Mountain and Hana Financial formed a joint venture to develop a pre-leased data center in Manassas, Virginia.
  • Cloud Capital acquired a turnkey data center in Manassas, Virginia, from COPT.
  • Strategic Datasphere acquired a turnkey data center in Alpharetta, Georgia, from Legacy Investing.
  • American Realty Advisors acquired two powered shells leased to Cyxtera in Sterling, Virginia.


  • KKR and Global Infrastructure Partners acquired CyrusOne for $15 billion.
  • DigitalBridge closed a $8.3 billion fund that will invest in data centers and other digital infrastructure assets.
  • GI Partners closed a $1.45 billion fund that will invest in data centers, life science buildings and R&D facilities.
  • Stonepeak led the $3.0 billion recapitalization of Cologix.
  • Stonepeak announced it will acquire a $2.5 billion interest in the U.S. data center business of American Tower.


After a record year in 2021, when European data center transactions totaled more than €1.1 billion, H1 2022 saw a slowdown in investment activity. Inflationary pressures exacerbated by the war in Ukraine and higher borrowing costs led to pricing uncertainty and extended transaction timelines. Despite the slowdown, 2022 totals are expected to reach normal levels, with several on-market transactions anticipated to close by year-end.

European offerings received fewer bids than in H2 2021, but overall investor interest remained high across the risk spectrum. If anything, investor demand for core-plus and value-add opportunities increased, while core declined slightly. While data center cap rates rose in H1 2022, the sector expanded more slowly than others, as robust fundamentals were offset by a shortage of opportunities. Rental growth is occurring in markets such as Frankfurt, where supply is highly constrained, although the trend is largely caused by increased construction costs and rising operating expenses.

The European occupational market is extremely strong, and we continue to witness record levels of take up. There remains a deep pool of buyers competing for a limited number of data center investment opportunities, which is helping to underpin pricing.
Paul MortlockLeader, CBRE Data Center Capital Markets, Europe


  • KAO Data acquired a stabilized triple-net-leased powered shell and a partially stabilized turnkey data center, both in West London.
  • Hyperco acquired a mixed-use building in Helsinki, Finland, leased to tenants including Equinix.
  • A confidential purchaser acquired a triple-net-leased powered shell in Birmingham, UK.


  • Digital 9 Infrastructure acquired Ficolo, a Finnish colocation operator with three data centers, for €135 million.
  • Digital 9 Infrastructure acquired Volta Data Centres, operator of a turnkey facility in Central London, for £45 million.
  • Macquarie Asset Management announced a joint venture with NTT Data Centers to support expansion across Europe and North America.
  • NorthC, a Dutch colocation platform owned by DWS, acquired Netrics, operator of three data centers in Switzerland. 


Overall data center investment in H1 2022 totaled $800 million, a significant drop from the prior year. Investors became more conservative amid rising financing costs and increased economic uncertainty.

Asian-Pacific markets are seeing a scarcity of asset- and platform-level opportunities. As in Europe, institutional investors that want to enter the Asian-Pacific data center market are increasingly seeking alternative methods such as forming their own platforms. This trend is illustrated by PAG’s launch of Flow Data Centres and Daiwa House’s launch of DPDC (D Project Data Center).

Additionally, markets like Singapore face an undersupply of power capacity. The Singaporean government indicates the current power moratorium will eventually be eased, but when and by how much remain unclear.

Short supply and increasing interest from hyperscale customers have led investors to focus on developing markets, including Thailand, the Philippines and Vietnam.

CBRE continued to see increased investor focus on the APAC data center market.  Several new platforms have launched in the region over the last 12 months as investors look to for alternative ways to enter the APAC market.  Southeast Asia is gaining attention from investors, as they believe there is significant growth and capacity yet to be captured.
Tom FillmoreLeader, CBRE Data Center Capital Markets, Asia-Pacific


  • Nuveen acquired the Cargo Consolidation Complex in Hong Kong.
  • Keppel DC REIT acquired two data centers from Neo Telemedia in Guangdong, China.
  • GDS acquired the SZ11 data center in Shenzen, China.
  • EtixEverywhere acquired a majority interest in the Genesis data center in Bangkok, Thailand.
  • Edgeconnex acquired a data center and land for development in Jakarta, Indonesia.
  • Keppel Fund II formed a joint venture with Heying to develop a data center in Huailai, Beijing.
  • SK Ecoplant and Digital Edge formed a joint venture to build a data center in Incheon, South Korea.
  • ST Telemedia Global Data Centres announced plans to build a data center in Seoul, South Korea.
  • STACK Infrastructure formed a partnership with Hickory to enter the Australian data center market and develop three facilities.


  • ESR completed the first closing of its $1 billion+ data center fund.
  • DigitalBridge invested in Australian platform Leading Edge Data Centres.
  • Flow2Edge, the data center platform owned by PAG, acquired DXN, operator of three Australian data centers.
  • Saratoga invested in Indonesian platform AtriaDC.

Latin America

The Latin American data center market grew more than 20% in H1 2022, reaching 568MW. Brazil remains the largest market and represents 70% of total supply in the region. Among other Tier I data center markets, Chile’s experienced tremendous growth in H1 2022, adding 31MW for a total supply of 79MW.

Leading operators and cloud providers in Latin America are focused on developing and commissioning recently acquired sites in Brazil, Mexico and Chile. Markets like Bogotá and Santiago continue to be competitive for new land acquisitions and receive consistent site selection interest.

Brazil is seeing an increased number of transactions related to edge computing and the rollout of 5G, driven by operators strengthening their presence in minor markets. In addition to São Paulo, Campinas and Rio de Janeiro, Brazil’s Southern and Northeastern markets are attracting investor interest.

More sale-leaseback opportunities, are becoming available across Latin America, emerging as an attractive alternative for new investors starting operations in the region.

A power capacity shortage continues to be a concern in parts of Mexico and areas within São Paulo; however, Querétaro, Mexico, remains one of the most competitive Tier I data center markets in Latin America.

The Latin American data center market continued its exponential growth trajectory in the first half of 2022. Global investors are increasingly attracted to the region's risk-adjusted returns and ample investment opportunities.
Alison TakanoLeader, CBRE Data Center Capital Markets, Latin America


  • Elea Digital acquired a data center in Porto Alegre, Brazil from TIM Brasil.
  • Equinix expanded into Latin America with a $705 million Entel data center acquisition.
  • Peru’s Optical Networks announced the development of two data centers in Lima, Peru.


  • Stonepeak acquired Lumen’s Latin American operations for $2.7 billion.
  • AWS announced new facilities in Bogotá, Colombia; Buenos Aires, Argentina; Lima, Peru; Queretaro, Mexico; Rio de Janeiro, Brazil; and Santiago, Chile.
  • Oracle opened a Querétaro, Mexico, cloud region.
  • EdgeUno acquired New Access, operator of two data centers in Ecuador.
  • International Finance Corporation invested an additional $35 million in OData to develop a data center in Querétaro, Mexico.