Intelligent Investment
Northern Virginia
North America Data Center Trends H1 2023
September 6, 2023 4 Minute Read
Colocation Insights
- Strong demand and immediate online supply constraints enabled Northern Virginia to set a record low 0.94% vacancy rate.
- The volume of projects under construction remains strong, largely driven by developers fulfilling previously signed forward lease commitments.
- Hyperscalers’ leasing volume remains at an all-time high, as they seek capacity where power is currently or soon to be available.
Market Trends
- Dominion Energy continues to make strides on upgrading transmission and distribution infrastructure, fueling regional growth as supply chain delays persist.
- Developers and end-users continue to look for new development sites. Activity is highest in Loudon County and Prince William County, but is emerging in Fauquier, Culpeper, Stafford and Spotsylvania counties due to supply constraints.
- Preleasing activity is very high, as companies are securing space while waiting for power delivery.
Notable Activity
- CyrusOne acquired 57 acres in Loudon County to expand its Northern Virginia presence.
- Major cloud providers remain the top lessees.
- NTT filed plans to build over 2 million sq. ft. on its newly acquired site in Prince William County.
- Amazon announced plans to invest $35 billion into data centers in Virginia.
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: Dominion Power.
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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Digital Realty is conservatively approaching new construction.
Related Service
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