Intelligent Investment

Dallas-Ft. Worth

North America Data Center Trends H1 2023

September 6, 2023 4 Minute Read

DAL_Hero

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.

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