2025 Global Data Center Market Comparison

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GLOBAL DATA CENTER MARKET COMPARISON

Political and Regulatory Variables

Key Takeaways

• The regulatory landscape for data centers is both complex and multifaceted, reflecting the priorities and economic strategies of the different regions, countries, states and markets. While tax abatements or reductions have traditionally been the core of data center incentive packages, recent global trends have introduced incentives tied to specific areas within a market, strategically directing development. • Sales and value-added taxes, which represent a relatively small portion of new development costs, present an opportunity for minor construction cost control and can provide a slight competitive advantage when comparing markets. • Selecting a politically stable location for data center development is crucial. Stable regions provide reliable power, access to skilled labor, increased investor confidence, and reduced risks from political unrest.

CUSHMAN & WAKEFIELD | DATA CENTER ADVISORY GROUP

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