Artificial intelligence demand and data centre expansion are reshaping global power markets, with grid access becoming a central factor in project viability, according to JLL.
Its analysis points to a sharp rise in electricity demand after years of relative stability or decline, with data centre growth emerging as a major driver across the United States, Europe and Asia Pacific. In Asia Pacific, data centre capacity is projected to rise from 32GW to 57GW by 2030, while global capacity could reach 200GW over the same period.
This shift is colliding with grid systems built for large, centralised power stations rather than a faster-growing, more dispersed mix of renewable generation and large-scale computing facilities. In several markets, queues to connect new projects now stretch to four years or longer, and some regions have paused new connections altogether.
That pressure is increasing the importance of transmission access in energy, property and digital infrastructure deals. Investors are placing greater weight on whether an asset already has a connection or a credible path to securing one, turning power access from an operational issue into a valuation question.
Hyperscale technology companies are also increasing spending as they build out cloud and AI infrastructure. JLL said hyperscalers had announced USD $200 billion of infrastructure spending for 2026, up 51% from 2025.
The trends are not uniform across regions. In the United States, interconnection reform and exposure to merchant power markets are altering deal structures. In Europe, regulatory change is moving at different speeds between countries. In Asia Pacific, the pace of data centre construction is outstripping grid planning in several markets.
Steven Jack, Head of Energy and Infrastructure Advisory, EMEA, at JLL, described the scale of the shift in power demand.
"We've seen a generational shift in power demand as a result of data centres and AI," Jack said. "This was not on the radar until very recently. Utilities that were forecasting modest growth are now grappling with figures nearly double their previous estimates. For any energy developer, without a grid connection, you don't have a project. For investors, this grid congestion translates directly into risk, but it also creates a scarcity premium for assets that provide or secure grid access. In a world of geopolitical uncertainty, generating your own power is about energy sovereignty or energy autonomy, and it's simply the cheapest way to produce power today."
Storage focus
Battery energy storage systems are becoming more prominent as developers and investors look for ways to manage intermittency, reduce stress on constrained grids and improve the economics of renewable supply. Their growth reflects a broader effort to build more flexibility into power systems as data centre demand rises.
Matt Eastwick, Group Head and Senior Managing Director, Energy and Infrastructure Advisory, U.S., at JLL, said batteries had become a key part of that response.
"Batteries are a very important component and asset in that balancing act," Eastwick said. "They act as shock absorbers for constrained grids, charging when power is cheap and abundant, then discharging when demand and price are high. We're in a brave new world. Power demand is rising faster than grids were built to handle. Capital is available, but certainty is harder to find. In this environment, winners will be those who factor grid constraints and power availability into their investment decisions from day one."
JLL also highlighted its recent advisory role on the disposal of a 395MW/790MWh operational battery storage portfolio in the UK, which it described as the largest operational sale of its kind in Europe. The firm said the transaction set a new pricing benchmark for the market.
Regional models
Grid bottlenecks are also changing the relationship between energy producers and major electricity users. Large technology groups are taking a more direct role in securing generation, including through purchases of operating renewable assets, to reduce reliance on uncertain connection timelines and wholesale market volatility.
One recent example cited by JLL involved a Bitcoin miner in Texas buying an operating wind farm that the firm had been marketing to secure its own power supply. The case illustrates the premium some users are prepared to pay for dependable access to electricity.
In Asia Pacific, investors are increasingly treating grid status and location as the first point of due diligence for development assets, particularly in liberalised electricity markets. JLL identified Australia, India, Japan and the Philippines as examples where connection status can have the biggest effect on valuation.
James Cameron, Head of Energy and Infrastructure, APAC, at JLL, said the pressure was producing new deal structures in the region.
"In liberalised markets in Asia Pacific, such as Australia, India, Japan and the Philippines, status and location of grid connection is the first question for investors and has the largest valuation impact for development assets," Cameron said. "In Australia, where legislation is expected to require data centre developers to ensure new renewable power generation matches additional capacity, we're seeing a range of innovative models, from joint ventures to the inclusion of batteries in data centre design to facilitate grid connection. While the solution will differ depending on circumstances, it is clear we will see many more partnership opportunities and innovative solutions between data centre and energy clients across the region."