Intelligent Investment


North America Data Center Trends H2 2023

March 6, 2024 4 Minute Read


Colocation Insights

  • The average power capacity requirement is increasing because there is less available space that can meet end users’ minimum deployment requirements. Power prices are rising in line with this capacity scarcity.
  • Operators are seeking incremental expansion capacity in and around existing collocation sites.

Market Trends

  • AI demand is leading to a new “as-a-service” category. This presents challenges for existing data centers regarding density and variances in power utilization standards.
  • Regulatory approval for power procurement is increasingly contingent on data centers’ addressing ESG issues that can include curtailment, district energy and economic development such as job creation.
  • Industrial master planning featuring data centers as net heat providers is being studied more.

Notable Activity

  • The second phase of Qscale’s new facility development should complete by mid-year.
  • Equinix became the sole owner of 9300 Trans-Canada.
  • Vantage Data Centers announced it will seek investment opportunities outside of Quebec due to power procurement issues.
  • Microsoft announced a $500 million investment to expand its hyperscale cloud computing and AI infrastructure in Quebec over the next two years.

Figure 1: Market Development Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2023.

Figure 2: Market Inventory and Vacancy

Source: CBRE Research, CBRE Data Center Solutions, H2 2023.

Figure 3: Market Fuel Mix

Source: Hydro Quebec.

Figure 4: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2023.

Explore Markets

  • Local Response | Intelligent Investment

    New York Tri-State

    March 6, 2024


    Publicly traded operators are seeking higher per kW pricing, due to rising capital costs and limited supply.

  • Local Response | Intelligent Investment

    Northern Virginia

    March 6, 2024


    Public cloud providers and AI companies leased most of this market’s available space.

  • Local Response | Intelligent Investment


    March 6, 2024


    Leasing was relatively muted in H2 2023.

Related Service