“Adoption and utilization of digital applications will continue to drive data center demand due to more storage, computing, and processing of data,” CBRE reports.
Most new construction has already been claimed
The data from CBRE shows that “nearly 80% or 3,056.4 of the 3,871.8 MW under construction was preleased.” Cloud providers continued to lease most available power capacity, according to CBRE, but it is noted that AI providers are also accounting for a “considerable amount of demand.”
The prelease trend will force “occupiers to prelease space between two and four years ahead of completion to meet their future data center requirements,” CBRE reports.
There’s a shortage of available power
Power availability continues to be a top consideration for data center site selection, and power delivery timelines “will continue to increase in H2 2024 due to a shortage of readily available equipment, such as transformers, switches, and generators,” according to the CBRE report.
CBRE also points to longer lead times for electrical infrastructure delaying construction completion, and an overall difficulty in procuring critical equipment causing delivery delays of up to four years.
New markets are emerging
While land and power availability are becoming more and more scarce in primary markets, new cities are emerging as potential locations for new data centers.
