Data center market faces all-time low vacancies despite record-breaking construction
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Power capacity available for lease fell to 1.4% in the first half of 2026, even as under-construction capacity surged 25%, according to CBRE. First published on Amid declining vacancy rates, data center landlords like Equinix and Digital Realty are leasing space faster than developers can build it with necessary power infrastructure. Net absorption, which measures change in leased space, increased by almost 12% in the first half of 2026, CBRE found. Rental rates are also rising, reflecting how limited power availability is boosting prices for major tech giants and smaller enterprises looking to lease data center space for AI operations, according to Gordon Dolven, head of Americas data center research at CBRE. "Rental pricing and vacancy rates have been perfectly inversely correlated in our report for the last few years," he said. For their clients looking to acquire data center space, Dolven recommends looking at leasing options three years ahead of schedule and being flexible about location. Data center space in Northern Virginia's "Data Center Alley" may be unavailable, but Atlanta and Columbus, Ohio could have openings. Northern Virginia remains the largest market by inventory, but Atlanta has emerged as the top market for total construction in North America. Data center development in the region surged over 50% year-over-year in the first half of 2026, surpassing Data...
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