Hillsboro Data Center Market Sees Strong Demand in 2025 Amid Record National Growth

Hillsboro remained one of North America’s most active data center markets in 2025, maintaining tight vacancy and consistent demand amid limited new supply, according to CBRE’s latest North American Data Center Trends Report.

Hillsboro ended 2025 with 475.4 megawatts (MW) of total inventory, a 0.2% vacancy rate and roughly 1.0 MW of available capacity, reflecting constrained supply and ongoing demand for power‑ready space. Asking rents ranged from $175 to $225 per kilowatt (kW) per month, per CBRE Research.

“Hillsboro’s exceptionally low vacancy underscores how critical the market has become for West Coast deployments,” said Haakon Weinstein, vice president at CBRE. “Even with limited new supply last year, demand remained steady, driven by the area’s network density and access to renewable power. With development constrained in part by the region’s urban growth boundary and power transmission limitations, availability will remain scarce, influencing both rate and land price trends.”

Nationally, the data center sector set records across several major indicators in 2025, reflecting a surge in leasing activity and rapid take‑up of newly built facilities.

Across the eight primary North American data center markets*, users absorbed 2,497.6 MW in 2025, up 38% from 1,809.5 MW in 2024. The vacancy rate fell to a historic low of 1.4%, even amid a 36% increase in total capacity (9,432 MW), underscoring the speed at which users are moving into new space.

The national average lease rate rose by 6.5% year over year to $195.94 per kW per month, marking the fourth straight annual increase. Limited availability and rising construction costs continue to contribute to rate pressure across primary markets.

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

*The eight primary North American data center markets are Northern Virginia, Dallas-Fort Worth, Silicon Valley, Chicago, Phoenix, New York Tri-State, Atlanta and Hillsboro.