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Report: North American Data Centers Break Leasing Records
North American data center leasing reached record levels in 2001, according to CBRE’s latest North American Data Center Trends Report. There was 493.4 megawatts (MW) of net absorption among the seven primarily U.S. center data markets in 2021, representing a 31% increase over the 2019 record level, and up 50% from 2020.
Leading the fray was Northern Virginia, which reported a 2021 net absorption of 303.3 MW, well above Atlanta’s 70.4 net absorption.
The reason for the high-rising numbers is pegged to increased demand from large cloud service providers and social media companies. Though inventory in primary markets increased 17% year over year, vacancy still stood at 7.2%. CBRE analysts believe that data center capacity should have more options in the coming year, as 727.6 MW of facilities are currently under construction. However, 44% of the space is already preleased.
“We expect continued strong data center demand from cloud service providers and social media companies in 2022 as these firms race to build out their digital infrastructure to support demand for cloud services and metaverse and other digital communities,” said Pat Lynch, Executive Managing Director, Data Center Solutions, CBRE. “We also anticipate increased appetite for highly connected colocation space from enterprise users, and pricing increases and longer lead times for available capacity in certain markets due to power constraints and supply chain challenges.”
- ◦Lease
