Surge in data centre construction across North America

North America’s data centre construction has soared by 70% compared to last year, with a record 3.9 gigawatts now under development, according to a recent CBRE Group report. This surge reflects the increasing demand for power-intensive data centres, driven by major technology companies expanding their artificial intelligence and cloud computing operations.

In the first half of 2024, over 500 megawatts of new data centres were introduced across the eight largest markets in the United States and Canada, equivalent to the entire capacity of Silicon Valley. New data centre inventory expanded by 10% during this period, representing a 23% increase from the previous year.

As new inventory rose, vacancy rates dropped to a historic low of 2.8%, with prices for newer data centres typically higher due to their advanced infrastructure. Older centres are unable to meet the growing power demands, further driving the pricing gap.

Smaller markets such as Northern Indiana, Idaho, Arkansas, and Kansas are expected to become more attractive as demand for modern facilities continues to rise.