**Hyperscalers, Cloud Service Providers Drive Global Data Center Vacancy to Record Lows**
Demand from hyperscalers and cloud service providers reached new heights in the first quarter of 2025, setting a record for leasing volume, according to CBRE’s latest Global Data Center Trends report. This surge is fueled by the widespread adoption of artificial intelligence (AI) and ongoing power constraints.
The report notes that strong demand coupled with limited availability in key markets has pushed hyperscalers to explore and invest in secondary markets. This trend has elevated locations such as Richmond, VA; Santiago, Chile; and Mumbai, India into emerging data center hotspots. Globally, the data center vacancy rate dropped by 2.1 percentage points year-over-year, hitting a historic low of 6.6% in Q1.
“Rising demand from AI and hyperscale users is shrinking vacancy, and operators with available capacity in key markets are commanding premium rates,” said Pat Lynch, Executive Managing Director for CBRE’s Data Center Solutions. “As supply tightens in core markets, we’re seeing rapid growth and investor interest in emerging markets, which are becoming central to global deployment strategies.”
North America led all regions in both inventory growth and tight vacancy. The continent saw a 43% year-over-year increase in data center inventory during Q1 2025, while maintaining the lowest average vacancy rate globally at just 2.3%. Northern Virginia continues to dominate as the largest data center market in North America, with Atlanta and Phoenix rising in prominence, surpassing traditional hubs like Dallas and Silicon Valley for the first time.
