Data center expansion reaches an ‘inflection point’
CNBC • • general
Key Points:
- Data center construction in North America is rapidly expanding beyond traditional markets, with Texas poised to surpass Virginia as the world's largest data center market, marking a significant shift in the industry.
- Approximately 64% of the 35-gigawatt construction pipeline is now outside mature markets like Virginia, and data center vacancies remain at a historic low of 1% through 2025, indicating strong sustained demand.
- Nearly 92% of the new data center capacity under construction is pre-committed by investment-grade tenants, suggesting low vacancy rates will continue through at least 2030, driven largely by hyperscalers and AI growth.
- Despite robust demand and record financing of $75 billion in 2023, infrastructure constraints, especially power grid
