Publications

- April 1, 2019: Vol. 31, Number 4

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Data center capacity increases in 2018

by Loretta Clodfelter

The data center segment saw a surge in development activity in 2018, according to a report from CBRE Research, with primary markets adding 322 megawatts of new capacity.

And data centers are set to keep growing. The primary market development pipeline is more than 500 megawatts, and the under-construction capacity in Northern Virginia alone exceeds the existing inventory in any single data center market in the United States. According to CBRE Research, Northern Virginia has 337 megawatts under construction. Other primary markets with significant amounts of capacity under construction were Phoenix (71 megawatts), Dallas/Fort Worth (37 megawatts) and Atlanta (21 megawatts). Among secondary markets, Houston has 23 megawatts under construction.

All that supply growth, though, has been reflected in an elevated vacancy rate. According to CBRE Research, the national wholesale vacancy rate was 11.0 percent at the end of 2018.

Trends driving the data center sector in 201

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