Supply in primary markets increased by 491.5 megawatts (MW), or 12 percent, in the first half of 2023 compared to the second half of 2022, and by 738.2 MW, or 19.2 percent, year-over-year, reported CBRE.
An all-time high of 2,287.6 MW was under construction in primary markets, a 25 percent year-over-year increase. Strong demand and developer appetite continues to drive new construction. But a lack of readily available power and extended lead times for key pieces of electrical infrastructure are delaying construction timelines.
The overall vacancy rate for primary markets remains near a record low, at 3.3 percent. Northern Virginia’s vacancy rate is 0.94 percent, the lowest of all U.S. markets.
AI is driving demand across most major markets. Many AI startups are seeking large requirements between 5 MW to 25 MW.
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