Jefferies Identifies Data Centers as Next Market Winners Amid Hyperscaler AI Capacity Race

The ongoing competition among hyperscalers for data-center capacity is creating a significant shift in the market dynamics, with record volumes of leased capacity being reported. Jefferies analysts highlight that North American non-commenced leases surged to 25.5 GW in Q2 2026, reflecting a remarkable increase of 32% quarter-over-quarter, and an astounding 346% year-over-year. This trend underscores an escalating reliance on third-party operators, who are projected to handle a larger share of future infrastructure growth, as opposed to traditional self-build models. Currently, leased facilities account for about 21% of installed hyperscaler capacity, but this is expected to considerably boost to 47% in future capacity plans, marking a substantial shift from historical averages of 25%.

The surge in lease commitments is occurring within a context of rising capital expenditures from major players. Jefferies reports that the combined capital expenditure (capex) for the top hyperscalers, including the Big 3 alongside Meta and Oracle, is set to reach approximately $811 billion in 2026 and $1.1 trillion in 2027. This corresponds with a growing backlog of $2.332 trillion, bolstering the view that capacity rather than demand constraints is driving this increased investment. The hyperscaler market is in a unique position where substantive financial commitments are being made, even as the physical infrastructure required to support such ambitions is still under construction.

Despite the promising indicators, the timing of capacity rollout remains uncertain due to factors such as power procurement challenges and supply chain constraints. However, the robust leased pipeline of 25.5 GW signifies a strong demand signal that will materialize over time. Jefferies points out that operators who control power, land, and have streamlined delivery capacities are exceptionally well-positioned to thrive. In particular, Amazon is leading the pack with a self-build capacity pipeline that significantly outstrips competitors, highlighting the strategic advantages held by dominant players in this evolving landscape.

Source: The Economic Times

(Expert Note: This intelligence brief was structured and verified by the Wealthova editorial desk.)