North American Data Center Demand Continues to Outpace Supply Despite Record Construction Activity

Surging demand has left the North American data center market with less available capacity despite record construction activity, according to CBRE's latest North American Data Center Trends Report.

After power-related project delays briefly softened activity at the end of last year, new construction rose 24.8% across the eight primary North American Data Center Markets* in the first half of 2026. The 7,481 megawatts (MW) under construction in H1 2026 surpassed the previous high reached in 2024. Although power constraints are extending completion timelines, more projects are moving from the planning stage into construction.

More than 80% of all capacity under construction is already preleased, up from 74.3% a year ago. This leaves less than 1,500 MW available for pre-leasing across North America's primary markets. At the current pace of demand, that equates to roughly six months of supply.

Total data center supply across North America's primary markets grew 33.7% year-over-year to a record 10.9 megawatts (MW). Meanwhile, net absorption – the amount of space newly occupied minus the amount newly vacated - increased by nearly 12% to 1,456 MW. Vacancy held steady at 1.4% compared with year-end 2025.

“Developers are bringing more projects to market, but occupiers are absorbing new capacity almost as quickly as it can be delivered,” said Pat Lynch, Executive Managing Director, CBRE Data Center Solutions. “The challenge is no longer whether developers want to build. It's whether power, infrastructure and approvals can keep pace with the scale of demand. Markets that can alleviate those bottlenecks will be best positioned to capture the next wave of investment.”

As available inventory dwindles, occupiers are facing higher costs across the board. Average asking rents rose for every major deployment size in the first six months of the year, led by an 8.3% increase for users seeking between 3 MW and 10 MW of capacity.

Locally, Atlanta emerged as North America's most active construction market for the first time, with nearly 2,900 MW under construction, overtaking Northern Virginia. Northern Virginia, however, remained the country's largest market by inventory and recorded the highest level of net absorption (467.7 MW), driving vacancy down to 0.2%.

“The next phase of growth will be defined less by demand and more by where new supply can realistically come online,” said Gordon Dolven, Director of Data Center Research for CBRE. “With more than 80% of space under construction already spoken for, many occupiers are effectively competing for future inventory rather than existing availability. That dynamic should continue to support rent growth and drive expansion into markets that can offer both power and development certainty.”

CBRE expects market conditions to remain tight as power constraints, infrastructure bottlenecks and strong AI-driven demand limit the pace at which new capacity can reach the market.