Data Center Vacancy Rate Hits Record Low In H1 2024 - CBRE
DateCenter Knowledge, Wednesday, August 21st, 2024
Demand for high-power computing is driving a significant price gap between new data centers and legacy facilities, which lack the infrastructure to support workload demands.
Overall data center vacancy rates for primary markets fell to a record low of 2.8% in the first half of 2024, from 3.3% in the year prior, with nearly 80% of more than 3.87 GW under construction in primary markets preleased, according to CBRE's H1 2024 North America Data Center Trends report released Monday (August 19).
While cloud providers continued to lease most of the available power capacity, artificial intelligence providers also accounted for a considerable amount of demand, CBRE says. Pricing continued to increase, but at a slower rate than last year, with a 7% bump in the average monthly asking rate for a 250- to 500-kilowatt requirement across primary markets in the first half of 2024.