Fast-Growing North American Data Center Market Set Records in 2025

The North American data center sector set records across nearly every major indicator in 2025, reflecting a surge in leasing activity and unprecedented take up of newly built facilities, according to CBRE’s latest North American Data Center Trend Report.

Across the eight primary data center markets*, data center users absorbed 2,497.6 megawatts (MW) in 2025, up 38% from 1,809.5 MW in 2024. Northern Virginia reclaimed its spot as the national leader, reaching 1,102 MW of net absorption, more than doubling the 451.7 MW absorbed in 2024. Atlanta claimed the top spot in 2024.

Nationally, the vacancy rate fell to a historic low of 1.4%, even amid a 36% increase in total capacity (9,432 MW), emphasizing the speed at which users are moving into newly built space.

“The surge in leasing across North America reflects how quickly business and consumers are adopting AI-powered tools and digital services,” said Pat Lynch, Executive Managing Director, CBRE Data Center Solutions. “Demand is outpacing supply, while power and supply chain shortages are reinforcing a power-first approach that prioritizes sites with the fastest path to power. Ultimately, unlocking additional supply will depend on power availability timelines, approvals for on-site generation, and greater investment in transmission infrastructure.”

The national average lease rate rose by 6.5% year-over-year to $194.95 per kW/month, marking the fourth straight annual increase. While last year’s increase was modest compared to the double-digit percentage jumps seen since 2022, limited availability and rising construction costs are still pushing prices upward.

Despite record demand, construction activity declined for the first time since 2020 due to extended timelines tied to permitting, zoning approvals and sourcing adequate power. Capacity under construction fell to 5,994.4 MW at year end from 6,350.1 MW at the end of 2024.

Top Data Center Markets

Northern Virginia expanded to 4,039.6 MW of total inventory, 37% more than a year prior, as the region delivered more than 1 gigawatt (GW)** of new capacity in 2025 amid sustained hyperscale and AI-driven demand. The region now has nearly three and a half times more data center capacity than all secondary US data center markets*** combined.

Other notable data center markets include Atlanta, one of the fastest-growing regions, with 2,076 MW under construction. Dallas-Fort Worth is now the third North American market to surpass 1 GW of total supply, joining Northern Virginia and Atlanta.

The combination of faster long-distance networks and soaring demand for AI training has opened the door for new markets previously considered “too remote” for large-scale development. Markets such as Nevada, Pennsylvania and Michigan are increasingly attractive due to abundant land, more flexible permitting environments and potentially easier access to power.

“The everyday use of AI, from data analysis to personalized recommendations, requires fast response times and servers located close to population centers,” said Gordon Dolven, Data Center Research Director, CBRE. “Combined with growing interest in markets that offer available land and power, this is spurring investment beyond traditional hubs and reshaping the North American data center market.”