Market Profiles

Atlanta had its highest volume of colocation leasing activity ever in 2024.

Demand continued to be driven by hyperscale and enterprise activity, resulting in higher asking rental rates.

Colocation space currently under construction will double the size of the Dallas-Ft. Worth data center market by year-end 2026.

Strong demand continued, with rental rate increases across all requirements.

Pricing is at all-time high for colocation facilities due to little available supply.

Occupiers are finding it difficult to secure 5 to 10 MW of contiguous space in existing colocation facilities due to strong preleasing.

The average size of lease transactions increased throughout the year as companies expanded their footprint.

Underlying demand for securing capacity in Silicon Valley is driving steady colocation interest.

The overall vacancy rate remained near a record low at 2.3%.

Most of the data center development in Central Washington consists of hyperscaler-owned sites and single-tenant facilities.

Developers are increasingly willing to build on spec in this historically build-to-suit market.

Just two regional facilities can accommodate large amounts of continuous power and space.

The overall vacancy rate fell to 14.9% in H2 2024 from 19.7% in H2 2023.

Little new supply was delivered in H2 2024.

Large continuous space for lease is limited to 2 MW at any given facility.

Enterprise clients are driving Seattle colocation demand.

Available capacity was limited to 5 MW, curtailing fulfillment of large-scale AI requirements.

For the first time, leasing activity in Greater Toronto totaling 8.6 MW in 2024 was led by AI-related occupiers rather than cloud service providers.