Intelligent Investment

Market Profiles

North America Data Center Trends H1 2023

September 6, 2023 5 Minute Read

Rows of hardware behind glass doors

Primary Markets

  • Local Response | Intelligent Investment

    Atlanta

    September 6, 2023

    ATL_Hero

    A majority of new development has been preleased to hyperscale providers.

  • Local Response | Intelligent Investment

    Chicago

    September 6, 2023

    CHI_Hero

    Demand continues to grow from technology, finance and healthcare sectors.

  • Local Response | Intelligent Investment

    Dallas-Ft. Worth

    September 6, 2023

    DAL_Hero

    AI leasing activity was strong in H1 2023.

  • Hillsboro

    September 6, 2023

    HILL_Hero

    AI and machine learning demand is complementing cloud service provider demand.

  • New York Tri-State

    September 6, 2023

    NYC_Hero

    Digital Realty is conservatively approaching new construction.

  • Local Response | Intelligent Investment

    Northern Virginia

    September 6, 2023

    NVA_Hero

    Strong demand and immediate online supply constraints enabled Northern Virginia to set a record low 0.94% vacancy rate.

  • Local Response | Intelligent Investment

    Phoenix

    September 6, 2023

    PHX_Hero

    Rental rates increased up to 30% over the trailing 12 months.

  • Local Response | Intelligent Investment

    Silicon Valley

    September 6, 2023

    SV_Hero

    A major data center operator filed for bankruptcy, potentially bringing new supply into the market.

Secondary Markets

  • Local Response | Intelligent Investment

    Austin/San Antonio

    September 6, 2023

    AUS-SA_Hero

    Vacancy is at 1.7%, nearly an all-time low.

  • Local Response | Intelligent Investment

    Central Washington

    September 6, 2023

    CW_Hero

    Central Washington’s data center presence mostly consists of hyperscale and single-tenant facilities, with limited colocation options.

  • Local Response | Intelligent Investment

    Charlotte/Raleigh

    September 6, 2023

    CHLT_Hero

    Operators and developers are evaluating new development because large blocks of existing inventory are very scarce.

  • Local Response | Intelligent Investment

    Denver

    September 6, 2023

    DNV_Hero

    Hyperscale requirements and demand continue to drive leasing and absorption in Denver, Aurora and Colorado Springs.

  • Local Response | Intelligent Investment

    Houston

    September 6, 2023

    HST_Hero

    Vacancy is down to 24%, from 33% in H2 2022.

  • Local Response | Intelligent Investment

    Minneapolis

    September 6, 2023

    MNPL_Hero

    The region has continued growing, with recent activity from DataBank, Cologix and CloudHQ.

  • Local Response | Intelligent Investment

    Seattle

    September 6, 2023

    SATL_Hero

    An existing tenant in Centeris Data Center in South Hill expanded their leasing space by 2 MW.

  • Local Response | Intelligent Investment

    Southern California

    September 6, 2023

    SOCAL_Hero

    Data providers continue to scout available land and conversion opportunities in the North Valley, as development opportunities remain limited in downtown LA.

  • Local Response | Intelligent Investment

    Montreal

    September 6, 2023

    MNTR_Hero

    VFX and gaming are no longer the only project types seeking higher rack densities. AI and other high-performance computing do too.

  • Local Response | Intelligent Investment

    Toronto

    September 6, 2023

    TRNT_Hero

    Demand for wholesale colocation resulted in 28 MW of preleasing in H1 2023.

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