Intelligent Investment
Seattle
North America Data Center Trends H1 2024
August 19, 2024 4 Minute Read
Colocation Insights
- Enterprise clients are leading Seattle area demand this year.
- Colocation pricing continues to rise.
- Leasing activity is increasing.
Market Trends
- AI is being offered as a fast, scalable, next-generation cloud-type service.
- Seattle’s green hydro power, combined with tax incentives and pockets of available power, are attracting new demand.
- Various liquid cooling systems are being tested and have spiked demand for lab-type space.
Notable Activity
- Sabey is completing a 6-MW expansion of its SDC Building 5, with delivery scheduled for Q1 2026.
- Washington State’s data center sales and use tax exemption for qualifying tenants and operators, once just available in rural locations, has greatly increased leasing and sales activity since it was expanded to cover the Puget Sound region in 2022.
Figure 1: Historical Market Information
Figure 2: Historical Supply and Demand
Figure 3: % of Total Secondary Market Inventory
Figure 4: Market Fuel Mix
Figure 5: Average Asking Rates
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Most of the data center development in Central Washington consists of preleased single-tenant facilities.
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Demand remained robust, with a shortage of large available space blocks.
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The overall vacancy rate fell to 6.4% in H1 2024 from 7.3% in H2 2023.
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