Intelligent Investment
Silicon Valley
North America Data Center Trends H2 2024
February 26, 2025 4 Minute Read
Colocation Insights
- AI-related occupiers are increasingly entering the market.
- Underlying demand for securing capacity in Silicon Valley is driving steady colocation interest.
- The colocation vacancy rate was at a record-low 5.5%, with the largest existing contiguous capacity being 4 MW.
Market Trends
- Power delivery timelines extended to the 2030s.
- An AI-related occupier leased 9 MW in Newark, CA, the largest block of existing capacity available.
- Smaller occupier requirements are most common due to lack of new supply coming online, with most being 10 MW or less.
Notable Activity
- Silicon Valley Power announced a base-rate increase of 5% in 2025.
- AWS plans to enter a 15-year, 20-MW deal using Bloom fuel cells for a planned data center in Silicon Valley.
- A cloud-service provider signed a 10-MW lease at an Equinix X-Scale facility.
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
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Hillsboro Data Center Market
February 26, 2025 4 Minute Read
Strong demand continued, with rental rate increases across all requirements.
The average size of lease transactions increased throughout the year as companies expanded their footprint.
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Southern California Data Center Market
February 26, 2025 4 Minute Read
Available capacity was limited to 5 MW, curtailing fulfillment of large-scale AI requirements.
