Intelligent Investment
Southern California
North America Data Center Trends H1 2023
September 6, 2023 4 Minute Read
Colocation Insights
- Data providers continue to scout available land and conversion opportunities in the North Valley, as development opportunities remain limited in downtown LA.
- The market is yet to see multi-MW demand from AI companies.
Market Trends
- Market activity has slowed and net absorption remained relatively flat. Enterprise companies are doing most of the small amount of current leasing.
- Asking rental rate pricing increased to accommodate inflation, increased labor and infrastructure equipment costs.
Notable Activity
- A global data center provider filed to build a 13-story data center project in downtown LA.
- After strong preleasing activity, Serverfarm and Prime Data Centers have new construction underway.
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 Secondary Market Inventory
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Figure 4: Market Fuel Mix
Source: Southern California Edison.
*Includes solar, wind, geothermal, biomass and small hydro.
Figure 5: Average Asking Rates
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
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