Intelligent Investment
Phoenix
North America Data Center Trends H2 2023
March 6, 2024 4 Minute Read
Colocation Insights
- Rental rates remain firm as space and power supply declines.
- Leasing activity remains strong and renewal rates increased by 20% from H2 2022 to H2 2023.
Market Trends
- There is strong demand for developable land to satisfy occupier demand.
- Data center buildings have become costlier to develop because cities now require more elegant design features.
Notable Activity
- Major hyperscalers are developing large campus projects to satisfy long-term growth needs.
- A major hyperscaler completed a joint venture with Salt River Project (SRP), a non-profit utilities provider. They constructed a massive solar-panel-based power generation plant.
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 Markets
-
Databank brought 2 MW online at its new facility in Centennial.
-
There was significant preleasing volume in 2023 for spaces over 1 MW.
-
Power rates are trending towards the high end of their $0.13 to $0.16 range.
Related Service
- Property Type
Data Center Solutions
Optimize your data center real estate with worldwide consulting, advisory and transaction, project management an...