Market Profiles

A majority of new development has been preleased to hyperscale providers.

Demand continues to grow from technology, finance and healthcare sectors.

AI leasing activity was strong in H1 2023.

AI and machine learning demand is complementing cloud service provider demand.

Digital Realty is conservatively approaching new construction.

Strong demand and immediate online supply constraints enabled Northern Virginia to set a record low 0.94% vacancy rate.

Rental rates increased up to 30% over the trailing 12 months.

A major data center operator filed for bankruptcy, potentially bringing new supply into the market.

Vacancy is at 1.7%, nearly an all-time low.

Central Washington’s data center presence mostly consists of hyperscale and single-tenant facilities, with limited colocation options.

Operators and developers are evaluating new development because large blocks of existing inventory are very scarce.

Hyperscale requirements and demand continue to drive leasing and absorption in Denver, Aurora and Colorado Springs.

Vacancy is down to 24%, from 33% in H2 2022.

The region has continued growing, with recent activity from DataBank, Cologix and CloudHQ.

An existing tenant in Centeris Data Center in South Hill expanded their leasing space by 2 MW.

Data providers continue to scout available land and conversion opportunities in the North Valley, as development opportunities remain limited in downtown LA.

VFX and gaming are no longer the only project types seeking higher rack densities. AI and other high-performance computing do too.

Demand for wholesale colocation resulted in 28 MW of preleasing in H1 2023.