Data center construction in North America's top markets has soared by 70% year-over-year, reaching a record 3.9 gigawatts, according to a CBRE Group report. The surge is driven by the growing power demands of AI and cloud computing, with more than 500 megawatts of new data centers added in the first half of 2024. This expansion has pushed vacancy rates to an all-time low of 2.8% and increased the cost of newer, high-powered facilities. The rising demand is also making smaller markets like Northern Indiana, Idaho, Arkansas, and Kansas more attractive for future data center developments.

Original article posted on August 20, 2024