State of the Market
- Supply in primary data center markets increased by 34%
year-over-year to 6,922.6 megawatts (MW), far surpassing the 26%
increase in 2023.
- Primary markets had a record 6,350 MW under construction at the
end of 2024, more than double the 3,077.8 MW at year-end 2023. This
surge was driven by robust demand and extended construction timelines
due to power constraints and supply chain delays.
- The overall vacancy rate in primary markets fell to a record-low
1.9% at year-end. Only a handful of facilities with 10 MW or more are
slated for delivery in 2025 and are not yet leased, reflecting the
scarcity of large-scale available inventory.
- Atlanta led all primary markets for net absorption in 2024 with
705.8 MW, well above perennial leader Northern Virginia’s 451.7 MW. This
was the first time any market surpassed Northern Virginia in annual net
absorption.
- The average monthly asking rate for a 250-to-500-kilowatt (kW)
requirement across primary markets increased by 12.6% year-over-year to
$184.06 per kW, reflecting continued demand amid tight supply.
- The rise of artificial intelligence (AI) workloads is
transforming the data center industry, driving unprecedented demand for
power-intensive infrastructure. AI-related occupiers are increasingly
influencing site selection, design and operational requirements,
prioritizing markets with scalable power capacity and advanced
connectivity solutions.
- Markets like Charlotte, Northern Louisiana and Indiana are seeing significant investment due to tax incentives, available land and greater power accessibility. These markets are poised to grow as they attract hyperscale and colocation providers alike.
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RSK: Look at the 3rd chart.....lease asking rates for data centers shooting up like a rocket. We shall see what the Cinese ai program does to this. Many think it is not all that it`s cracked up to be.
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- - Volume: 25 - WEEK: 10 Date: 3/5/2025 3:38:41 PM -