Power eclipses fibre as the dominant factor in the AI‑driven data centre race, according to the newly released DC Byte Global Index Report 2026.
Electricity now drives site selection
The study notes that for decades, proximity to enterprise customers, internet exchanges and subsea cables guided the placement of hyperscale data centres. Those considerations remain relevant, but they no longer dictate where new facilities will be built. As AI models grow larger, the industry’s biggest challenge has shifted from moving data to securing enough electricity for massive GPU clusters.
Markets that combine reliable power supply, ample land and supportive government policies are beginning to outpace long‑established technology hubs. The index highlights that “while demand for AI infrastructure continues to accelerate, data centre operators are increasingly constrained by electricity availability rather than customer demand,” highlighting a clear change in investment logic.
Potential constraints such as grid connection timelines, land access, planning policy, sustainability requirements and community acceptance now shape which markets can scale and how quickly. In short, deliverability is just as important as demand.
Regional shifts reveal new hubs
In Europe, Dublin is being reshaped by power availability and grid access, with new projects expected to include self‑generation and locate in less constrained parts of the network. Planning backlogs and opposition from environmental groups are slowing delivery, prompting hyperscalers to reconsider further expansion in Ireland.
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London, the continent’s largest data centre market, still sees strong demand, yet future delivery increasingly depends on supporting infrastructure such as substations keeping pace with development. Similar patterns emerge in the United States. Phoenix, once a hotspot for growth, now confronts limits in power and water supplies.
Rather than expanding within traditional technology centres, hyperscale cloud providers are directing billions of dollars toward locations that can provide abundant electricity, large tracts of land and business‑friendly regulatory environments. This is reshaping the global data centre map, with several secondary markets rapidly overtaking long‑established hubs.
Among the emerging AI infrastructure hubs, the index cites cities such as Johor in Malaysia, Melbourne in Australia, and Pittsburgh and Charlotte in the United States. These locations attract significant AI investment because they can accommodate the enormous power requirements of next‑generation computing.
Johor illustrates the shift vividly.
Africa’s situation differs. South Africa remains the continent’s most mature market, with operators such as Teraco and Africa Data Centres establishing local regions, and hyperscalers AWS, Microsoft and Google maintaining cloud presence. However, the findings suggest that connectivity alone will no longer be enough to secure the next wave of AI investment.
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For many African governments, the emphasis on national AI strategies and digital economy plans has not been matched by attention to the physical infrastructure—reliable electricity, modern transmission networks, industrial land, water management and streamlined planning approvals—required to support AI at scale.
From a practical standpoint, the shift toward power‑rich sites means that regions able to guarantee steady, high‑capacity electricity will likely see more job creation and ancillary industry growth.
Communities near these emerging hubs could benefit from infrastructure upgrades, but they also face the risk of increased energy demand and potential environmental pressure.
Overall, the DC Byte Global Index Report 2026 paints a picture of a data centre industry in transition. The traditional focus on fibre connectivity and proximity to internet exchange points is giving way to a new priority: the ability to deliver massive, reliable power. As AI workloads become more power‑intensive, markets that can meet those needs will dominate the next phase of global data centre development.
