In the midst of commercial real estate’s uneven recovery, data centers stand out as a rare growth engine, drawing billions in investments despite mounting hurdles. JLL CEO Christian Ulbrich, speaking on CNBC’s ‘Squawk Box,’ highlighted how his firm’s services—managing over 340 facilities worldwide—position it to capitalize on the surge without owning the assets. JLL’s stock has climbed 29% in the past year, outpacing the flat S&P real estate index, thanks to servicing top corporates riding the AI wave.

Ulbrich emphasized that capital flows freely into data centers, but power availability remains the primary bottleneck. “The constraint around data center is power,” he told CNBC hosts. This scarcity is reshaping site selection, pushing developers toward industrial zones with robust grid access or even overseas markets where approvals come faster.

Power as the Ultimate Gatekeeper

JLL’s freshly released 2026 Global Data Center Outlook forecasts the sector doubling to 200 gigawatts by 2030, propelled by AI demands in a $3 trillion investment wave. The report, published January 5, 2026, argues this isn’t a speculative bubble, as vacancy rates hover low and rents climb. Yet, power constraints could throttle new builds, with grid connections taking years in high-demand U.S. hubs like Northern Virginia.

Developers are scouting secondary markets such as Texas and the Midwest, where excess power from renewables or shuttered plants offers relief. Ulbrich noted on CNBC that projects now prioritize sites with immediate grid hookups, even if it means repurposing old factories. Local opposition over noise and water use adds friction, prompting shifts to the Middle East, where legal hurdles are lower.

Global Hunt for Land, Water, and Electricity

Beyond power, land and water scarcity complicate expansions. Data centers guzzle millions of gallons daily for cooling, sparking community backlash in water-stressed areas. Data Center Dynamics reported on January 15, 2026, that JLL views these challenges as navigable, with metrics like rising pre-leasing rates signaling sustained demand.

In the U.S., states like Georgia and Ohio emerge as hotspots due to available acreage near transmission lines. JLL advises clients to layer in edge computing facilities closer to users, easing central hub pressures. Ulbrich stressed the need for new power plants, a process lagging behind hyperscaler needs from Amazon, Microsoft, and Google.

Investment Supercycle Defies Headwinds

The JLL outlook projects a ‘supercycle’ with $3 trillion poured into construction by 2030, per Connect CRE coverage from early January 2026. This boom offsets office vacancies plaguing the sector, with data centers yielding double-digit returns. Public REITs like Equinix and Digital Realty, however, have underperformed stocks amid construction delays, as noted in a Forbes analysis on January 15.

Financing innovates too: green bonds and partnerships with utilities fund off-grid solutions like on-site solar and batteries. JLL facilitates capital raises, helping owners scale without balance-sheet strain. Ulbrich’s model—project management, design, and operations—keeps JLL agile amid volatility.

Commercial Real Estate’s Bright Spot

For broader CRE, data centers counterbalance rising construction costs and remote-work shifts. JLL’s corporate clients thrive, boosting service revenues. Yet, affordability plagues housing, an issue Ulbrich called global. Institutional investors hold just 3% of single-family rentals, per his CNBC remarks, downplaying impacts from policy curbs on corporate homebuying.

New York City’s affordability push, including proposals from figures like Mamdani, faces high build costs and equity gaps, Ulbrich observed. Solutions like subsidized land falter against inflation. In rentals, lower-income groups struggle worldwide, complicating urban development.

U.S. Power Grid Under Strain

Recent web searches reveal grid operators like PJM warning of multi-year delays for new connections. Data Center Knowledge, in a January 16, 2026, piece, dubbed data centers CRE’s ‘jewel’ for 2026, but power limits pace. States offer incentives: Virginia’s tax breaks lure projects, while Arizona bets on desert solar.

Hyperscalers commit billions—Microsoft’s $10 billion Iowa deal shows scale. JLL manages leasing, ensuring 90%+ occupancy. X posts from industry watchers echo Ulbrich: power trumps all, with #DataCenterBoom trending amid AI hype.

Overseas Expansion Accelerates

Europe lags U.S. growth due to regulations, but JLL eyes Asia-Pacific booms. JLL India news from January 2026 highlights India’s 200GW global share. Middle East hubs like Saudi Arabia draw with cheap energy and lax rules, per Ulbrich.

Water recycling and air-cooling tech mitigate resource strains. Investors pivot to ‘dark fiber’ and modular builds for speed. JLL’s outlook stresses diversified portfolios to weather constraints.

Long-Term Grid Overhaul Looms

By 2030, fusion pilots and small modular reactors could unlock capacity, but timelines stretch. Utilities partner with tech giants for dedicated lines. Ulbrich’s optimism stems from AI’s inexorable pull: “Most of them have been incredibly successful,” he said of clients.

JLL’s edge lies in end-to-end services, from capital to ops, fueling market-share gains. As CRE navigates headwinds, data centers promise a decade of expansion—if power flows.