Intelligent Investment

Northern Virginia

North America Data Center Trends H1 2023

September 6, 2023 4 Minute Read

NVA_Hero

Colocation Insights

  • Strong demand and immediate online supply constraints enabled Northern Virginia to set a record low 0.94% vacancy rate.
  • The volume of projects under construction remains strong, largely driven by developers fulfilling previously signed forward lease commitments.
  • Hyperscalers’ leasing volume remains at an all-time high, as they seek capacity where power is currently or soon to be available.

Market Trends

  • Dominion Energy continues to make strides on upgrading transmission and distribution infrastructure, fueling regional growth as supply chain delays persist.
  • Developers and end-users continue to look for new development sites. Activity is highest in Loudon County and Prince William County, but is emerging in Fauquier, Culpeper, Stafford and Spotsylvania counties due to supply constraints.
  • Preleasing activity is very high, as companies are securing space while waiting for power delivery. 

Notable Activity

  • CyrusOne acquired 57 acres in Loudon County to expand its Northern Virginia presence.
  • Major cloud providers remain the top lessees.
  • NTT filed plans to build over 2 million sq. ft. on its newly acquired site in Prince William County.
  • Amazon announced plans to invest $35 billion into data centers in Virginia.

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: Dominion Power.

Figure 5: Average Asking Rates

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

Explore 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

    New York Tri-State

    September 6, 2023

    NYC_Hero

    Digital Realty is conservatively approaching new construction.

Related Service