Intelligent Investment
Silicon Valley
North America Data Center Trends H1 2024
August 19, 2024 4 Minute Read
Colocation Insights
- The overall vacancy rate fell to 6.4% in H1 2024 from 7.3% in H2 2023.
Market Trends
- Available supply remained largely made up of smaller, second-generation suites.
- AI providers are beginning to enter the Silicon Valley market.
Notable Activity
- A local operator that specializes in high-density AI deployments preleased 700 kW of the 1.2 MW that it will deliver in Q4 in a converted industrial building.
- One prominent operator’s portfolio is 99.3% leased, with only 1 MW available across 137.5 MW in nine facilities.
Figure 1: Historical Market Information
Figure 2: Historical Supply and Demand
Figure 3: % of Total Primary Market Inventory
Figure 4: Market Fuel Mix
Figure 5: Average Asking Rates
Explore More Markets
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Demand remained robust, with a shortage of large available space blocks.
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Rental rates remained firm due to reductions in available supply and power.
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The AI boom finally reached Southern California, with most of the requirements sized between 2 and 20 MW.
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