The North American data center sector showed resilience in the first half of 2020 as many businesses implemented hybrid IT infrastructure to improve their remote work capabilities, according to CBRE’s latest North American Data Center Trends Report.
The seven primary U.S. data center markets saw 134.9 megawatts of net absorption in the first half of 2020 — down from record levels in the first halves of 2019 and 2018, but still higher than the same period in 2017 and 2016. The vacancy rate in the primary markets dropped 70 basis points year-over-year to 10.3 percent, despite a 5 percent growth in inventory during the first half of the year. The decline in net absorption was largely due to increased supply.
The Canadian data center market also recorded a strong first half of the year, with net absorption in Toronto exceeding, and Montreal on par with, the second half of 2019 levels, when CBRE Research began tracking these markets.
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