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Demand from Financial Services Drives NYC Data Center Vacancy to New Low
Insatiable demand for data center space drove New York Tri-State’s vacancy rate to an all-time low of 9% in the sector for the first half of 2022, according to CBRE’s North America Data Center Trends Report. The financial services sector remained the dominant player in the market’s leasing activity, which helped net absorption reach 16.0 megawatts in H1.
To meet demand, major data center operators are adding supply at a rapid pace, with under-construction activity at a 10-year high of 67 MW in H1 2022.
“In addition to the never-ending demand by financial services companies, hyperscalers are also beginning to make waves in the region looking for capacity,” said Robert Meyers, SVP with CBRE’s Data Center Solutions Group. “With 67 MW of new construction, we believe that the data center sector is well positioned to meet the growing demand, but more supply may be needed in the future.”
Pictured: DataBank’s under-construction 30-MW data center in Orangeburg, NY.
- ◦Lease
- ◦Development
