Intelligent Investment

Southern California

North America Data Center Trends H1 2025

September 8, 2025 4 Minute Read

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Colocation Insights

  • Downtown Los Angeles and its surrounding submarkets offer a robust supply of both retail and wholesale colocation inventory.
  • Pricing is increasing due to reduced vacancy rates.

Market Trends

  • AI initiatives are projected to be the primary driver of net absorption this year.

Notable Activity

  • Growing demand from AI and hyperscale companies is attracting new developers. For example, Goodman is planning to introduce turnkey capacity.
  • CoreSite and Goodman announced plans for new developments in Vernon.
  • One Wilshire is actively marketing over 10 MW of available shell capacity.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H1 2025.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H1 2025.

Figure 3: % of Total Secondary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H1 2025.

Figure 4: Market Fuel Mix

Source: Southern California Edison.
*Includes solar, wind, geothermal, biomass and small hydro.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H1 2025.

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Property Type

Data Center Solutions

Our lifecycle data center service offering consolidates your data center real estate, facilities and technology systems into a single operational and financial model.

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