Understanding the U.S. data center market in 2024
Research - FEBRUARY 12, 2024

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Understanding the U.S. data center market in 2024

by Lewis Dayton

Data centers are becoming more dominant fixtures in our society as their use cases increase due to the increased application of artificial intelligence and high-performance computing.

CBRE’s 2024 U.S. Real Estate Market Outlook looks in depth into how data center operations and development will play out this year and provides insight for investors navigating the marketplace.

Projecting a 10 percent to 15 percent pricing increase in 2024 (coming off a 16 percent year-over-year price increase for 250- to 500-kilowatt requirements in 2023), CBRE expects the market to continue to reward existing and coming-to-market quality data centers as demand outstrips supply by a notable margin.

With such high price increases, it will make sense for investors to become more interested in the data center space, and CBRE says that such fundamentals likely will lead institutional investment in data centers to increase in 2024.

CBRE sees Austin-San Antonio, Texas,

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