U.S. Data Center Leasing on Record-Setting Pace in 2019

According to CBRE’s latest U.S. Data Center Trends Report, driven by demand from large cloud and enterprise users, U.S. data center leasing is on pace to exceed 2018’s record-setting year.

The seven main markets for US data centers. They recorded 171 megawatts (MW) of net absorption in the first half of 2019, almost 57 percent of the 2018 annual record. That absorption almost eclipsed the 200 MW of added capacity in H1. Northern Virginia, the world’s largest data center market, accounted for 74 percent of net absorption in primary markets.

Main markets for US data centers
Northern Virginia remained the most active data center market, with a net absorption of 126.4 MW in the first half of 2019.

The strong demand has resulted in more than 411 MW of developing capacity across the country, in addition to the almost 200 MW delivered in the first half of 2019. Northern Virginia accounts for 60 percent (248.7 MW) of construction activity current in primary markets, largely due to large requirements of cloud users.

Top U.S. Data Center Markets
Northern Virginia remained the most active data center market, with net absorption of 100 MW in H1 2018.

Rounding out the top 10 most active markets:

  • Phoenix (32.5 MW)
  • Dallas/Ft. Worth (19.1 MW)
  • Silicon Valley (10.6 MW)
  • Austin/San Antonio (9.8 MW)
  • Chicago (9.4 MW)
  • Seattle (6.1 MW)
  • Southern California (5.2 MW)
  • Atlanta (3 MW)
  • New York Tri-State Region (2.5 MW)