The North America Data Center colocation market has reached a critical tipping point, with vacancy rates plummeting to an unprecedented 2.3 percent amid relentless demand for digital infrastructure. JLL’s North America Data Center Report – Midyear 2025 reveals how, as inventory grows to a record 15.5 gigawatts, the sector continues its explosive growth trajectory while grappling with severe capacity constraints and energy sourcing challenges.
Northern Virginia maintains its position as North America’s largest data center market. With 5.6 gigawatts of capacity, it is more than triple the size of Dallas–Fort Worth, the second-largest market at 1.5 gigawatts. The report also highlights how cloud providers and technology companies continue to dominate data center demand, accounting for 65 percent of all leasing activity.
“The colocation market is experiencing unpreceden
