Q4 2024 U.S. data center market overview

Data center inventory in the U.S. continues to hit record highs, with commissioned colocation power expanding nearly 50% over the past 12 months. Yet, vacancy rates remain at historic lows, holding steady at just 1.6%. As demand for data center capacity accelerates, developers are exploring new strategies to overcome power generation and transmission bottlenecks—whether by expanding into emerging markets or adopting innovative solutions like on-site power generation.
17.6 GW

Inventory

Inventory growth in North American data center markets has accelerated in response to the surge in demand, with total U.S. colocation data center inventory expanding by 47.5% year over year in the fourth quarter of 2024.

1.8 GW

Quarterly absorption

Net absorption reached a record high in the fourth quarter of 2024, exceeding 1.8 GW nationwide. Northern Virginia led the market, as expected, while Texas showed remarkable growth. The emerging market of Austin ranked second highest, and the more developed Dallas/Fort Worth market came in third.

1.6%

Vacancy

Despite record-setting deliveries in the fourth quarter of 2024, U.S. colocation data center vacancy rates maintained all-time lows, driven by strong demand and constrained supply.

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