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Tri-State Data Center Demand Surges in ’23
The New York Tri-State area witnessed a remarkable surge in demand for data center space during the latter half of 2023, driving vacancy rates to an all-time low of 6.5%, down from 9.8% in the first half of the year, according to CBRE’s North America Data Center Trends report. The heightened demand, particularly from AI operators, led to a substantial increase in rental rates, ranging from $130 to $150 per kW for monthly requirements of 3-10 megawatts (MW).
“Activity in the second half of 2023 was extremely robust with very high demand and per kW pricing increasing 20% to 30%,” said Robert Meyers, a senior vice president for the CBRE Data Center Solutions Group. “In addition to high demand and limited supply, all operators are seeking higher per kW pricing due to rising capital costs.”
Significant developments in New York include the ongoing construction of a databank facility in Orangeburg, which has already been fully pre-leased to an AI company. Plans are underway for the expansion of an additional 30-MW building.
- ◦Development
