Data Center Vacancy Rates Hit Record Low Amid Rising Prices and Construction Delays, CBRE Reports for H1 2024.

Data center vacancy rates for primary markets in North America fell to a record low in the first half of 2024, according to CBRE’s H1 2024 North America Data Center Trends report. The report also noted a significant price gap between new data centers and legacy facilities, with existing data centers lacking infrastructure to support workloads. Most of the available power capacity was used for high-power computing capability, and AI providers also accounted for significant demand. Despite under-construction activity increasing by 69% year over year, delays in construction completion persist due to a shortage of available power and longer lead times for electrical infrastructure. Pricing continued to increase, but at a slower rate than last year, with a 7% increase in the average monthly asking rate for a 250- to 500-kW requirement across primary markets. Rental rates are expected to continue rising in the second half of 2025 due to growing construction and equipment costs, supply-and-demand dynamics, CBRE says.