Chapter 8
Silicon Valley Data Center Market
North America Data Center Trends H2 2025
3 Minute Read
3 Minute Read
Colocation Insights
- Colocation requirements of 10 MW or more of contiguous space are commanding a premium due to limited availability.
- Thorough planning for capacity is crucial for colocation providers and occupiers to establish fair market values.
Market Trends
- Pricing continues to surpass other North American markets, driven by tight vacancy rates.
- New construction activity remained limited by power challenges.
Notable Activity
- Several projects have been preleased and are slated for completion in H1 2026.
- Silicon Valley Power’s 4% rate increase took effect in January 2026.
- Amazon Data Services secured approval for a 56-acre data center development in Gilroy.
Figure 1: Historical Market Information
Figure 2: Historical Supply and Demand
Figure 3: % of Total Primary Market Inventory
Figure 4: Market Fuel Mix
Figure 5: Average Asking Rates
Report Contacts
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.