Data center demand swells in North America

North America’s data center market has continued to surge as companies continue to shift toward hybrid cloud environments in the aftermath of the COVID-19 pandemic.

A new report from CBRE found that demand for capacity more than tripled year-over-year in the first half of 2022, and despite a 20 percent increase in wholesale colocation supply over the past year, developers are struggling to keep up with that demand.

Although large hyperscalers remain the biggest users, the market has seen a resurgence in enterprise demand, and vacancy rates have fallen from a year ago. In addition, many markets are seeking to expand their geographic range for new developments.

The vacancy rate in Northern Virginia, the world’s largest data center market, decreased from 8.9 percent to 1.9 percent, and the market began expanding into Maryland and to Culpepper, Va.

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