Cushman & Wakefield: Americas Data Center Growth Depends on Local Market Conditions

Data Center Boom Broadens, But Markets Matter
CRE Market Beat Take
Record construction with high precommitment suggests durable user demand, but increasingly market-specific outcomes around power, transmission and regulation will shape risk-adjusted returns.

The Americas data center sector is in a period of strong expansion, but the pace and durability of growth vary significantly by market, according to Cushman & Wakefield’s Americas Data Center Update covering the first half of 2026. The research highlights that power allocation, transmission constraints, infrastructure funding responsibilities and differing regulatory frameworks are creating a more uneven growth profile than in prior cycles.

The report estimates that data centers across the Americas now total 50.3 gigawatts (GW) of operational capacity. Development activity is accelerating, with 37.7 GW under construction across the region. Notably, 91.7% of that pipeline is already precommitted, indicating that most planned capacity is tied to users before delivery. In addition, the planned development pipeline extends to 285 GW, underscoring the scale of digital infrastructure contemplated for the coming years.

Despite the broader geographic spread, several established hubs continue to anchor the market. Operators are still actively pursuing new projects in Virginia, Atlanta, Chicago and Dallas. Cushman & Wakefield notes that the combination of dense network connectivity, concentration of hyperscale users, access to experienced labor and well-developed supporting infrastructure in these locations is difficult for emerging markets to match.

Construction activity is also becoming more concentrated in certain regions. Ten markets across the Americas each have more than 1 GW of capacity underway, with four of those markets located in Texas. This underscores the role of selected states and metros as core growth engines for new data center capacity, even as other markets work to attract similar investment.

At the same time, operators are extending their footprint into secondary and tertiary locations. Markets such as Cheyenne in Wyoming, West Texas, Alberta and Pennsylvania are drawing attention, suggesting that providers are looking beyond the most established hubs to address demand, navigate power and land constraints, and respond to local policy considerations. These emerging markets are beginning to participate more directly in the region’s digital infrastructure build-out.

Looking forward, the report concludes that artificial intelligence, cloud services and broader enterprise digital transformation will continue to fuel demand for data centers throughout the Americas. However, the ability of individual markets to capture that demand will depend increasingly on infrastructure readiness, predictable regulatory environments and reliable power availability.

Cushman & Wakefield characterizes the Americas data center landscape as more complex and geographically diverse than at any point in the past. The firm expects each market to manage and pace its own growth in line with local interests, constraints and strategic priorities, reinforcing the importance of understanding market-specific dynamics when evaluating new development or expansion opportunities.

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