Lack of power pushes rental price increases in major U.S. data center markets: report

Joe Burns | Source: Utility DIVE | Posted 07/12/2024

As vacancy rates hit new lows across major markets, sourcing power is a top priority for operators across North America and other regions, CBRE says in the report, released June 24. Despite corporations facing increased difficulty securing data center capacity, inventory in North America grew 24.4% year over year in the first quarter of 2024, led by 807.5 megawatts of growth across northern Virginia, Dallas, Chicago and Silicon Valley, per the report.

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CBRE’s 2024 Global Data Center Trends report reveals that global data center market growth is being hindered by a continued worldwide power shortage, with secondary markets offering ample power attracting more investments. As vacancy rates decrease in major markets, sourcing power becomes a priority for operators, especially in North America where data center inventory grew significantly in the first quarter of 2024.

Public cloud providers and AI companies are driving demand for data centers in North America, leading to tight availability and rising pricing. The report highlights the challenges and opportunities in key markets like northern Virginia, Chicago, Dallas-Fort Worth, and Silicon Valley, emphasizing the need for addressing power constraints, streamlining permitting processes, and integrating renewable energy to sustain growth in the data center industry.

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Source Link: https://www.utilitydive.com/news/data-center-cbre-report-power-availability-issues-rising-rents/720437/

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Lack of power pushes rental price increases in major U.S. data center markets: report

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