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Chicago Data Center Demand Remains Robust
Chicago saw the sixth-most data center leasing activity in North America in the first half of 2020, according to CBRE’s latest North American Data Center Trends Report. Driving demand were social media and cloud services companies, as well as new tax incentive legislation that spurred development.
Chicago saw 7.3 megawatts (MW) of net absorption in H1 2020, up approximately 55% from the same period a year earlier. Despite 20 MW of new capacity added over the preceding 12 months, the market’s vacancy rate dropped 40 basis points year-over-year to 13.7%. Chicago remains the fourth largest data center market in the U.S. by capacity.
“With its central location, infrastructure and access to a massive population, the Chicago market will continue to be a critical market for data center activity,” said Jordan Thompson, VP with CBRE’s Data Center Solutions Group in Chicago. “We expected demand to remain strong.”
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