Interconnection Market Health | PTC 2026 Telecom Workshop Clip

Why It Matters

Understanding where data‑center capacity, power, and connectivity intersect helps investors and operators target sustainable growth markets and avoid regions where infrastructure constraints could limit returns.

Key Takeaways

• US dominates data center capacity, but 80+ operators exceed 1M sq ft.
• Emerging markets like Chennai, Santiago, and Jakarta show fastest growth.
• Hyperscale deployments remain US‑centric, comprising ~70% of new sites.
• Data centers consume ~3% of global power; some regions exceed 40%.
• Market Connectivity Score reveals gaps in power and cloud on‑ramps.

Summary

The PTC 2026 Telecom Workshop clip uses a surfing metaphor to frame the current state of the global data‑center market, focusing first on commercial facilities and then on hyperscale deployments. It outlines the traditional dominance of North America, especially the United States, while noting that roughly half of the top‑10 commercial markets are U.S. locations, with the remainder split between APEC and Europe.

Key insights include a surprisingly broad operator landscape: two firms control over 30 million sq ft, yet more than 80 operators hold at least 1 million sq ft each, creating a long tail of localized ecosystems. Fast‑growing metros such as Chennai, Santiago de Cerro, Jakarta, and Mumbai have doubled capacity since 2023, driven by a surge of both local and international players. Hyperscale sites remain heavily U.S.‑centric—about 70% of new builds—reflecting the country’s role in AI training and GPU access.

The presenter highlights power constraints as a critical bottleneck: data centers already use roughly 3% of global electricity, with regions like Northern Virginia allocating over 40% of planned generation capacity to new facilities, and Mumbai approaching unsustainable levels. The Market Connectivity Score (MCS) tool surfaces specific gaps—markets with abundant international bandwidth but few cloud on‑ramps, or strong data‑center stock but weak power availability—pointing to both risks and investment opportunities.

For investors and operators, the takeaway is clear: while the U.S. remains the anchor, emerging hubs with favorable power and connectivity metrics represent the next wave of growth. Strategic focus on markets where MCS indicates under‑served power or cloud infrastructure can yield outsized returns as the industry seeks sustainable expansion.

Original Description

Senior Research Manager Jon Hjembo presents the latest trends in the interconnection market, including how data center operators are managing power and space concerns, and which cities are poised to be the next major hub.

Watch the full 2026 telecom workshop here: https://youtu.be/PKd1FxGsgls