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Research - SEPTEMBER 2, 2021

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Data center market burgeons as demand grows and vacancy rates drop

by Kali Persall

Demand for space in data centers rose in the first half of the year, as providers brought 214.3 megawatts of new space online during that time period, according to a new report from CBRE.

Wholesale colocation inventory topped 3 gigawatts in primary markets, and new construction in these markets was up 42 percent year-over-year. This happened as vacancy rates reached historically low levels in several markets, with a nationwide-low of 1.6 percent.

The report notes that data centers’ positive performance is being fueled by ever-rising consumer demand for ecommerce, the explosive growth of edge computing and other secular trends. Interest in edge computing and edge data centers is rising, prompting the positioning of centers closer to end-users to support 5G, artificial intelligence, blockchain technology and media content traffic.

The research also shows that sustainability remains a high priority for investors, with a focus on sourcing clean energy, as well as

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