# Data Centers Thriving Amid Market Challenges, JLL Report Finds
Despite market challenges and unique dynamics, the data center sector is experiencing significant growth. According to **JLL’s North America Data Center Year-End 2024 Report**, the industry is moving forward at full speed, with colocation vacancy rates reaching record lows and absorption levels doubling over the past two years.
### Key Findings
Investors continue to be drawn to data centers, making the sector one of the most favored real estate asset classes. Emerging markets such as Northwest Indiana, Central Virginia, and Texas’ I-35 Corridor are seeing increased activity as developers seek locations with available power and land.
Companies operating data centers have significantly increased rack densities over the last decade. Rack density—measuring the power used by equipment within a server rack—now averages **21 kW** across all U.S. data centers. However, only **19%** of data centers in 2024 are considered AI-ready. Looking ahead, **36%** of operators plan to upgrade their facilities to accommodate AI-driven workloads within the next two years.
As demand for AI and high-performance computing grows, the data center sector continues to evolve, maintaining its strength as a critical asset class within the real estate and technology industries.
