Northern Virginia Extends Lead as Largest U.S. Data Center Market in 2025

Northern Virginia recorded 1,102 megawatts (MW) of net absorption in 2025, a 144% increase from 2024. The region also maintained the lowest vacancy rate among all primary US data center markets*, at 0.5%, according to CBRE’s latest North America Data Center Trend Report.

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. The region now has nearly three and a half times more data center capacity than all secondary US data center markets*** combined.

By the end of 2025, the region had only 21.5 MW of available supply, highlighting the imbalance between what occupiers need and what can be delivered; this pushed asking rates for 10-plus-MW requirements to $155-$185 per kW.

“Northern Virginia remains the backbone of the world’s cloud infrastructure,” said Anna Faktorow, Senior Vice President with CBRE’s Data Center Solutions Group. “Even after delivering more than a gigawatt of new supply last year, vacancy remains near zero because powered and entitled land has become exceptionally scarce. The region is far from being closed for business.”

Market conditions were defined by limited availability and robust leasing activity, with 96% of 2026 scheduled supply already committed, making it increasingly difficult for occupiers to secure space as preleasing stretches into 2027. Meanwhile, the introduction of Dominion Energy’s batching system has extended power‑delivery timelines for new projects, intensifying competition for entitled sites with near‑term power access.

Despite limited availability, Northern Virginia benefits from strong long‑haul fiber connectivity and proximity to major cloud and federal users. Unlike other emerging US hubs that are seeing significant AI‑training development, Northern Virginia’s growth is driven primarily by cloud workloads, reflecting the region’s unique network advantages and role in national infrastructure.

Top Data Center Markets

Other notable data center markets include Dallas-Fort Worth, which 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.

Top 10 Largest North American Data Center Markets by Inventory (MW)