Intelligent Investment
Dallas-Ft. Worth
North America Data Center Trends H1 2023
September 6, 2023 4 Minute Read
Colocation Insights
- AI leasing activity was strong in H1 2023.
- Rental rate pricing continues to rise across all requirement sizes.
- Due to construction delays, a significant amount of new available leasing space is delayed until Q4 2024 to Q1 2025.
- Vacancy remains near historical lows, at 4.1%.
Market Trends
- Several hyperscale and enterprise occupiers have submitted competing offers for available space in what little vacancy remains.
- Hyperscalers and developers are increasingly interested in southern Dallas.
- Substation delivery timelines are now 24 to 30 months for power availability.
Notable Activity
- Databank acquired a facility they were leasing.
- Flexential successfully delivered 13 MW for a large tech company.
- Lincoln Rackhouse leased space to an AI company.
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: EIA.
Figure 5: Average Asking Rates
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Explore Markets
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A majority of new development has been preleased to hyperscale providers.
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Demand continues to grow from technology, finance and healthcare sectors.
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Rental rates increased up to 30% over the trailing 12 months.
Report Contacts
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