Data Center Vacancy Declines to Record Low During First Half of 2022: CBRE Report
Originally published on October 16, 2022, by Michael Tucker for the Mortgage Bankers Association.
The North American data center market added significant new supply this year, but overall vacancy declined to a record low, reported CBRE, Dallas.
The CBRE North American Data Center Trends Report said increased demand from large cloud service providers, social media companies and enterprise users fueled the sector in first-half 2022. More than 352 megawatts of new supply went online in the seven primary U.S. data center markets, a 20 percent increase year-over-year.
Despite the new capacity, data center vacancy decreased to an average of 3.8 percent across the seven primary markets in the first half–down from 10.3 percent a year before–as large cloud users raced to secure space to accommodate anticipated future growth. Significant preleasing of space under construction in prior years also contributed to the large drop in vacancy, the report said.