2026: The Gigawatt Era Begins

The bell had not even rung for 2026 yet, and we already had a four-billion-dollar transaction in motion.

Right before the year turned, reports surfaced that SoftBank was in talks to acquire DigitalBridge. Four billion dollars. Before most of us had even closed out our end of year budgets. That is not how hype behaves. That is how conviction behaves.

It was a fitting way to enter 2026, because it perfectly reflects what many of us have been feeling for months. Capital is moving faster than headlines can keep up with. The scale of what is being built is accelerating. And the role of the data center is shifting from quiet infrastructure to a foundational economic engine.

Recently, a post of mine was featured on LinkedIn News. The post examined what it really takes to succeed in the AI and data center industry right now. I keep coming back to a simple idea.

You need two things. Power and bravery.

By 2030, our industry is on track to require more than 200 gigawatts of power. That number still stops people in their tracks. But the clearest signal of what is coming is not just energy demand. It is where the money is going.

In 2025, according to S&P Global, global AI-driven data center dealmaking surpassed 61 billion dollars, setting a new all-time record. That happened while investors were actively questioning AI valuations and infrastructure costs. Capital does not move like that on hype alone. It moves when long-term conviction is already forming.

From that post, here is my big prediction:

In 2026, more data center capacity will be deployed or under contract than in all previous years combined.

I’m making this prediction not because demand is suddenly rising. But because the capital committed over the past two years has not yet materialized into steel, concrete, and electrons. We’re seeing how vast amounts of land is being secured, massive power agreements are being negotiated, and entire energy ecosystems are forming around AI infrastructure.

I really believe that most forecasts are still behind the curve.

This is not a feeling. It is supported by what we are seeing across global markets. According to McKinsey, data center demand tied to AI workloads is expected to grow at more than 30 percent annually through the end of the decade. The International Energy Agency has warned that electricity demand from data centers could double by 2030. Meanwhile, global infrastructure funds are sitting on record dry powder, much of it earmarked specifically for digital infrastructure.

The capacity wave is coming. Fast.

And with that, I have a very special preview for our readers…

A Sneak Peek: State of the Data Center 2026

As the author of the upcoming AFCOM State of the Data Center 2026 report, I cannot give everything away yet. But I can share a few findings that strongly reinforce where this industry is heading.

Let’s start with new builds. The upcoming AFCOM report shows that the average number of new data center facilities organizations expect to build will increase from one today to six over the next three years. That is a sixfold increase in new facilities planning, not over a decade, but within a single planning cycle. This aligns directly with the capital flows we are seeing across hyperscale, colocation, and enterprise environments.

Now look at rack density. Our findings saw the single largest jump in average rack densities, with the mean now sitting at 27 kW per rack and climbing quickly. Nearly 70 percent of respondents expect density to increase further over the next 12 to 36 months, with liquid cooling and airflow optimization leading the charge. The AI implication is clear. It is reshaping the physical design of the data center.

Power strategy is shifting as well. Our report shows that 66 percent of respondents are considering or already deploying on site power generation, including microgrids and localized generation.

Just a note… This is not about sustainability marketing. It is about resilience, speed to market, and control in a constrained grid environment. Industry wide, AI focused, single-building facilities, can consume between 50 and 100 megawatts each, with some campuses now planned well north of a gigawatt.

Finally, let’s talk about the big spending. CAPEX is going up.

The majority of respondents reported increased capital expenditures year over year, driven primarily by facility expansion, power infrastructure, and AI capable systems. Based on trends that we’re seeing, this is not incremental investment. This is structural investment.

If you want the full story, you will need to join me for the AFCOM State of the Data Center 2026 webinar on January 22.

You can register here: AFCOM - Advancing IT and Data Center Infrastructure Professionals

That is where we will connect these dots live and dig into what they mean for your organization.

The Top Five Data Center Strategies for 2026

I want to leave everyone with some action-based steps to succeed in what will undoubtedly be a wild year for our industry. Based on everything I am seeing across the industry, here are the five strategies that will define success in 2026.

1. Power partnerships, not just power agreements

Access to power is now the single biggest barrier to entry. The operators pulling ahead are forming partnerships with utilities, energy developers, and on site generation providers. These partnerships unlock creativity, reduce timelines, and enable differentiated energy strategies. Power is no longer a line item. It is a relationship.

2. Community engagement and policy leadership

Lobbying and community work will be one of the toughest challenges facing our industry. It is also one of the biggest opportunities. NIMBY sentiment and fear thrive in the absence of information. We need to be clear about our intentions, transparent about our impacts, and proactive in addressing community concerns. The operators who earn trust will build faster.

3. Infrastructure beyond GPUs

The bottlenecks ahead are not just compute. Power gear, racks, cooling equipment, RAM, and storage are all under pressure. Leaders are working with integrated supply chain partners to ensure the entire system can be delivered together. AI infrastructure is an orchestration problem, not a component problem.

4. Safety and security at higher densities

For the first time ever, human threats ranked as the number one security concern, ahead of ransomware, in the State of the Data Center 2026 report. At the same time, more power than ever is flowing into each rack, alongside new cooling technologies and unfamiliar equipment. Safety, training, and physical security must evolve in parallel with density.

5. Rethink metrics and design philosophy

Traditional kW per rack metrics are becoming meaningless for AI. What matters now is workload output per unit of power and cooling. Leaders are shifting toward utilization, throughput, and efficiency metrics. They are planning differently for training versus inference. They are integrating telemetry from GPUs, cooling loops, and power systems. The winners will sell outcomes, not square footage.

Final Thoughts

It feels like we just discovered oil, but have not invented the engine yet.

2026 will be the year when plans turn into steel, capital turns into capacity, and predictions turn into reality. More data center capacity will be deployed or under contract than ever before. I stand by that.

Power and bravery must go together. Guided by responsibility. Fueled by curiosity. Executed with intent.

I truly believe that this is our moment to build something meaningful. 

-- Bill Kleyman, Executive Chair, Data Center Programs, Informa; Co-Founder and CEO, Apolo.us