Colocation Insights

  • Tight supply remains a challenge for occupiers requiring 5 MW or more of contiguous space.
  • Pricing remains at record highs due to limited supply.
  • PJM pricing increases continue to push occupiers to consider adjacent markets.

Market Trends

  • High power costs and limited tax incentives are limiting growth compared to other markets.
  • Speculative construction is limiting transaction volume.

Notable Activity

  • New Jersey markets are seeing interest in available powered land.
  • Financial services companies seeking low-latency workloads continue to drive demand.
  • Multiple build-to-suit tenants are exploring locations in the market.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2025.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H2 2025.

Figure 3: % of Total Primary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H2 2025.

Figure 4: Market Fuel Mix

Source: Consolidated Edison.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2025.
Several server racks, showcasing a robust IT infrastructure suitable for technology companies or data centers.
Property Type

Data Center Solutions

Our lifecycle data center service offering consolidates your data center real estate, facilities and technology systems into a single operational and financial model.