Despite challenges and unique market dynamics, data centers are thriving. According to JLL’s new North America Data Center Year-End 2024 Report, the sector is charging full speed ahead, with colocation vacancy plummeting to a record low and absorption levels doubling in just two years.

Key findings in the report highlight that investors are drawn to data centers, as the sector remains among the most favored real estate asset classes. Emerging hotspots like Northwest Indiana, Central Virginia, and the I-35 Corridor in Texas see continued activity as developers seek power and land sites.

Companies that operate data centers have ramped up rack densities over the last decade. Rack density refers to the amount of power the equipment within a server rack uses, and currently, the average rack density across all U.S. data centers is estimated at 21 kW. Only 19% of data centers in 2024 were AI-ready, with 36% of operators planning to upgrade their existing facilities to be AI-ready in the next 24 months.