New York Tri-State

Publicly traded operators are seeking higher per kW pricing, due to rising capital costs and limited supply.
Vacancy declined from 9.7% in H1 2023 to 6.5% in H2 2023. Older vacant space may not be viable for modern occupiers.
A financial institution is assuming a master lease in Northern NJ to run a 7-MW enterprise site.
Pricing is increasing 20% to 30% or more, with strong increases across various kW and MW requirements.

While historically a financial services industry-focused market, trends have shifted towards hyperscaler and AI occupiers.
Power procurement issues are delaying expansion plan timelines for existing campuses by 12 to 24 months.
Supply chain issues continue to impact switchgear and generator procurement but are improving. .

AI occupiers preleased over 60 MW, with further expansions in active negotiation.
QTS’s Piscataway, NJ facility is fully leased, including the annexed 40 MW building.
QTS has preleased Building 1 at its East Windsor, NJ campus to an AI company. It is under construction to accommodate at least 20 MW.
A Databank facility in Orangeburg, NY is fully preleased to an AI company and under construction. Expansion is planned for an additional 30-MW building.
Equinix purchased a new building in Secaucus, NJ.

Source: CBRE Research, CBRE Data Center Solutions, H2 2023.

Source: CBRE Research, CBRE Data Center Solutions, H2 2023.

Source: CBRE Research, CBRE Data Center Solutions, H2 2023.

Source: Consolidated Edison.

Source: CBRE Research, CBRE Data Center Solutions, H2 2023.

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