The North American data center sector is undergoing a transformative period, with hyperscale and AI demands driving unprecedented growth. JLL’s recent market analysis indicates a mere 1% vacancy rate, underscoring the industry’s rapid expansion. Contrary to the norm, new capacity is predominantly emerging outside established hubs such as Northern Virginia and Silicon Valley. Texas, in particular, is poised to surpass Northern Virginia as the leading data center market globally by 2030, with 6.5 GW currently under construction. Additionally, frontier markets like Tennessee, Wisconsin, and Ohio are gaining traction, supported by robust infrastructure and favorable business conditions. The surge in project scale, with over 10 developments exceeding 1 GW, reflects the escalating requirements of AI workloads.
Could Texas Overtake North Virginia as the Data Center Capital?
The data center industry in North America is experiencing a surge in growth, fueled by the increasing demand for hyperscale and AI technologies. JLL’s latest market analysis reveals that vacancy rates have plummeted to just 1%, highlighting the industry’s rapid expansion. With significant developments underway, including a 35 GW pipeline, the landscape is evolving away from traditional hubs like Northern Virginia and Silicon Valley. Emerging markets like Texas are taking center stage, with 6.5 GW of capacity under construction, positioning the state to become the world’s largest data center market by 2030.
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