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Americas Data Center Vacancies Drop to 3% as Demand Exceeds Supply
The vacancy rate for data centers in the Americas has fallen to 3%, with more than 80% of deliveries pre-leased in major markets, pushing lease rates higher, Cushman & Wakefield reported Thursday. Power and component lead times continue to slow delivery of new supply.
Demand for artificial intelligence (AI) and cloud data centers surged in the first half of 2024, in both established and emerging markets. Absorption is poised to surpass 2023’s record levels. Despite an expanding supply pipeline, demand continues to outpace supply, resulting in consistently declining vacancy rates.
“Interest in large-scale power availabilities, plentiful land and less strict latency requirements for AI, has driven hyperscalers and operators to expand in a host of historically peripheral markets such as rural Georgia, North Carolina, Pennsylvania, Texas, Minnesota and the Dakotas, among many other outlying areas just beyond the ‘major’ established data center markets,” said Bo Bond, Cushman & Wakefield’s executive managing director.
- ◦Lease
- ◦Development
