North American data center fundamentals remained exceptionally tight in the first half of the year even as new development reached unprecedented levels, according to CBRE’s latest North America Data Center Trends Report. The report indicates that demand for capacity continued to run ahead of the new supply pipeline across the region.
Across the eight primary data center markets tracked by CBRE, construction activity increased 24.8% from prior levels, reaching a record 7,481 megawatts of capacity under way. More than 80% of that under-construction capacity has already been preleased, underscoring how limited immediately available space is for users seeking near-term options.
Leasing metrics in the first half further highlighted the strength of occupier demand. Net absorption climbed nearly 12% to 1,456 megawatts, while overall vacancy remained exceptionally low at 1.4%. With such a small share of inventory sitting vacant, most new leasing is being captured by projects that are still under development rather than existing facilities.
Among the primary markets, Atlanta emerged as the construction leader, with nearly 2,900 megawatts of capacity currently underway. Northern Virginia, meanwhile, retained its position as the largest data center market by total inventory, even as new supply continues to be added across other hubs.
CBRE expects market conditions to remain tight, pointing to power constraints, broader infrastructure bottlenecks and ongoing demand as factors that are pressuring the timing and scale of new deliveries. These challenges are shaping how quickly new capacity can be brought online, even as users continue to seek additional space.
Gordon Dolven, Director of Data Center Research for CBRE, noted that the sector is entering a new phase in which the main question is no longer whether demand will be there, but where additional supply can realistically be delivered. With more than 80% of the space currently under construction already committed, many occupiers are effectively competing today for future inventory instead of existing availability.
For market participants, the combination of record development, high preleasing levels and very low vacancy underscores the importance of tracking where power and infrastructure can support new capacity, as those locations are likely to capture the next wave of requirements.
