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Americas Data Center Update: Second Half of 2022 | H2 2022

Jacob Albers • 2/8/2023
Going into 2023, demand across market types looks to continue, with providers in primary markets moving to more peripheral submarkets with more affordable land and power while initial clusters in secondary markets continue rapid build-outs.

Americas Data Center Update (image)

Demand in primary markets continued to push vacancies downward not just in Northern Virginia, but also Dallas, Chicago, Silicon Valley, Atlanta and Phoenix. These markets are now all experiencing under five percent vacancies. Development has grown where possible, with a record breaking 1.8 GW under construction across North America.

In 2022, established markets began to feel the growing pressures of limited power and land. Northern Virginia, the largest data center market in the world, encountered an unprecedented multi-year pause on development in certain submarkets, as utility companies work to address a massive development pipeline. As a result of this, there has been growing interest in secondary markets such as Portland, Columbus, Austin, Canadian markets among many others as operators seek larger sites with affordable power. 

Key markets featured in this report include: 

  • Atlanta
  • Austin
  • Chicago

  • Columbus
  • Dallas 
  • Denver

  • Montreal
  • New York / New Jersey 
  • Northern Virginia

  • Phoenix
  • Portland
  • Silicon Valley
  • Toronto

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