Intelligent Investment
New York Tri-State
North America Data Center Trends H1 2023
September 6, 2023 4 Minute Read
Colocation Insights
- Digital Realty is conservatively approaching new construction.
- Publicly traded operators are looking for higher per kW pricing, due to the rising cost of capital.
- Inventory is still very limited, with all major operators having almost no vacancy.
Market Trends
- Demand remains incredibly strong and is outpacing supply. AI operators and financial services companies are the most active lessees.
- Data centers’ power supply has not been reduced or materially impacted by new construction projects.
- Supply chain issues continue to impact the speed of construction completion.
Notable Activity
- An AI operator is seeking to lease 25 MW. Financial services companies are collectively seeking 40 MW.
- QTS remains under construction and is set to deliver 8 to 10 MW of capacity in Piscataway, NJ.
- Databank recently broke ground on an Orangeburg, NY facility, with an aggressive scheduled completion of Q1 2024.
- Equinix is considering adding new capacity in the area.
- Pricing is resilient, with steady increases across various kM and MW requirements.
Figure 1: Historical Market Information
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Figure 2: Historical Supply and Demand
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Figure 3: % of Total Primary Market Inventory
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Figure 4: Market Fuel Mix
Source: Consolidated Edison.
Figure 5: Average Asking Rates
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Explore Markets
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A majority of new development has been preleased to hyperscale providers.
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Demand continues to grow from technology, finance and healthcare sectors.
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Strong demand and immediate online supply constraints enabled Northern Virginia to set a record low 0.94% vacancy rate.
Related Service
- Property Type
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