A Market on the Rise
The rise of AI, cloud computing, and machine learning has reshaped commercial real estate, pushing data centers to the forefront of investment strategies. Once secondary to office and retail, data centers now represent one of the fastest-growing asset classes, driving billions in capital allocation and infrastructure development worldwide.
52% YoY Increase
Tech giants like Amazon, Meta, and Microsoft collectively spent $236 billion on data center expansion in 2024—a 52% year-over-year surge. Projections indicate this could exceed $300 billion in 2025 as AI workloads demand greater processing power.
40% of Investments
Data centers now account for 40% of total real estate investment targets across 50+ global funds, surpassing traditional asset classes like office and retail. Institutional investors are prioritizing high-yield digital infrastructure
$20B + in Private Investments
Leading private equity firms—including Blackstone, KKR, and DigitalBridge—are allocating record-breaking capital to data center developments, fueling expansion in secondary markets and emerging tech hubs.
MIDWEST’S NEXT GOLD RUSH
The Midwest’s data center boom presents unprecedented opportunities in real estate, infrastructure, and workforce development. For businesses, site selection now hinges on energy access, connectivity, and regulatory support. As demand accelerates, strategic partnerships with local governments, utilities, and executive hiring firms will be crucial in shaping the region’s future as a global data hub.
Strategic Location
The Midwest’s central positioning provides low-latency access to major U.S. markets, making it an ideal hub for data distribution, cloud computing, and AI-driven applications. Cities like Chicago, Columbus, and Omaha serve as key interconnection points, offering direct fiber routes across North America. Chicago alone accounts for nearly 14% of all data center leasing activity in the U.S.
Renewable Energy Initiatives
The Midwest leads the U.S. in wind energy production, with states like Iowa and Illinois generating more than 50% of their electricity from renewables. MidAmerican Energy’s $11 billion wind farm investment is strengthening Iowa’s ability to power data centers with clean, low-cost energy. Tech giants are prioritizing sustainability—Google’s new Midwest data centers are designed to operate on 100% renewable power by 2030.
Major Investments
Major tech firms are pouring billions into Midwest data center expansion. AWS is developing an $11 billion campus in Indiana, while Google has committed $1 billion to Kansas City. The region now has one of the fastest-growing data center development pipelines, with over 500 megawatts currently under construction across key Midwest markets.
Real Estate & Energy Transformation
The exponential growth of data centers has led real estate firms to evolve from traditional landlords to active energy partners, focusing on securing sustainable power sources and investing in energy-efficient infrastructures.
Surging Energy Consumption
In 2022, global data centers consumed approximately 460 terawatt-hours (TWh) of electricity, accounting for about 2% of worldwide energy use. This consumption is projected to double by 2026, driven by the increasing demands of artificial intelligence and cloud computing.
Industrial Retrofitting and Repurposing
To meet the rising demand, existing industrial properties are being transformed into data centers. This approach not only maximizes the use of underutilized assets but also contributes to sustainability by reducing the need for new construction.
Commitment to Renewable Energy
Leading tech companies are setting ambitious goals to power their data centers with renewable energy. For instance, Google aims to operate on 24/7 carbon-free energy across all its data centers by 2030, while Meta focuses on integrating renewable energy and efficiency in its facilities.
Colocation Market Expansion
The data center colocation market is experiencing significant growth, with projections indicating a compound annual growth rate (CAGR) of 10.96% from 2024 to 2029. This trend is attracting a wave of institutional investors seeking opportunities in this burgeoning sector.
Bridging the Talent Gap
The rapid expansion of data centers has outpaced the available talent pool, creating a significant hiring bottleneck that threatens industry growth. From engineering and operations to leadership and sales, organizations are struggling to fill key roles, leading to higher costs, project delays, and operational risks.
SKILL & EXPERIENCE MISMATCH
50% of data center operators report difficulty in finding qualified talent for specialized roles, particularly in mechanical, electrical, and plumbing (MEP) engineering, energy management, and cybersecurity. The lack of specialized skills leads to inefficiencies and increased operational risks.
LOCATION DISPARITIES
Many data centers are located in regions with low population density and insufficient skilled labor, requiring extensive relocation efforts. 10% of critical roles in data centers remain unfilled, creating a reliance on costly relocation packages and comprehensive training programs to bridge the gap.
RETENTION CHALLENGES
High turnover rates persist, particularly for mid-level and specialized roles. The industry’s first-year retention rate is just 18%, with professionals frequently moving to established tech hubs offering higher compensation and career advancement opportunities.
The Right Leaders for a Data-Driven Future
As competition intensifies for top-tier leadership and technical talent, organizations must adopt a proactive hiring strategy. Partnering with an executive search firm, like Jackson Lucas, ensures access to highly skilled professionals who can drive long-term success.
Access to a Broad Talent Network
Executive search firms maintain extensive industry relationships, identifying top candidates who aren’t actively job-seeking but possess the expertise and leadership qualities needed to manage high-stakes data center operations.
Industry Insight
Hiring for data centers isn’t just about technology—it’s about infrastructure, energy management, and scaling operations efficiently. Firms like Jackson Lucas specialize in sourcing executives with deep knowledge of:
Strategic site selection and real estate investment
Operational efficiency in high-growth, high-cost environments
Cybersecurity and risk mitigation in critical infrastructure
Efficiency and Confidentiality:
Executive search firms streamline the hiring process by conducting in-depth market research, assessing technical competencies, and ensuring cultural alignment. With demand at an all-time high, a targeted, strategic approach helps organizations reduce time-to-hire while maintaining confidentiality for high-level placements.