Power availability and cost have moved from background considerations to primary drivers of site selection, development feasibility and asset performance. According to JLL Research, transparency scores for building-performance standards, in-use energy tracking and power provision are among the most improved elements in this year’s index, as the International Energy Agency projects electricity demand could grow 40% or more globally by 2035.
European markets are leading through initiatives including REPowerEU, the Revised Energy Performance of Buildings Directive and the Corporate Sustainability Reporting Directive (CSRD). Elsewhere, Australia and Canada are introducing new building codes to lower energy demand and prepare for decentralized energy distribution, while a major revision to Japan’s Energy Conservation Act will require all new buildings to meet stringent efficiency standards. A lengthening list of countries, including the UAE, India, Japan, Australia, Canada and Brazil, are also adopting requirements for companies to publicly disclose their strategy and risk management on sustainability, energy use and climate risk. For occupiers in power-intensive sectors like advanced manufacturing and data centers, mapping grid capacity and constraints is becoming as important as evaluating rent or labor access.
