Intelligent Investment

Chicago

North America Data Center Trends H1 2023

September 6, 2023 4 Minute Read

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Colocation Insights

  • Demand continues to grow from technology, finance and healthcare sectors.
  • Hyperscalers are driving a large majority of demand.
  • Oracle and Microsoft show strong potential for continued regional growth.

Market Trends

  • Land prices continue to steadily rise despite macroeconomic conditions and increased interest rates.
  • Lead times are lengthening for power in the data center corridor. Some sites require up to five years for power delivery. The Elk Grove Village area substations have limited distribution/bridging power. As a result, ComEd is leading a site search for a new substation position, while collaborating with multiple developers on on-site substation developments.
  • Land availability is constrained so data center operators are continuing to seek creative solutions that involve rezoning, assemblages of office properties or pioneering new submarkets.

Notable Activity

  • Aligned Data Centers, Stream Data Centers and Nexstar Media Group/IPI are each planning data center campuses in the Elk Grove area.
  • Edged Energy began construction on a new data center in Aurora, a city in the Chicago metro area’s western region.
  • Microsoft acquired 30 more acres of land in the Hoffman Estates area.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H1 2023.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H1 2023.

Figure 3: % of Total Primary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H1 2023.

Figure 4: Market Fuel Mix

Source: ComEd.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H1 2023.

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