Data Center Market Set Records Across Indicators in 2025, CBRE Reports

The North American data center sector set records across nearly every major indicator in 2025, reflecting a surge in leasing activity and unprecedented take up of newly built facilities, according to CBRE, Dallas.

The firm’s latest North America Data Center Trend Report found that across the country’s eight primary data center markets–northern Virginia, Dallas-Fort Worth, Silicon Valley, Chicago, Phoenix, New York Tri-State, Atlanta and Hillsboro, Ore.–data center users absorbed 2,497.6 megawatts in 2025, up 38% from 1,809.5 MW in 2024. (There are also eight secondary North American data center markets: central Washington, Austin-San Antonio, southern California, Seattle, Houston, Denver, Minneapolis and Charlotte – Raleigh.)

Northern Virginia reclaimed its spot as the national leader, reaching 1,102 MW of net absorption, more than doubling the 451.7 MW absorbed in 2024. Atlanta had claimed the top spot in 2024.

Nationally, the data center vacancy rate fell to a historic low of 1.4%, even amid a 36% increase in total capacity (9,432 MW), emphasizing the speed at which users are moving into newly built space.

“The surge in leasing across North America reflects how quickly businesses and consumers are adopting AI-powered tools and digital services,” said Pat Lynch, executive managing director of CBRE Data Center Solutions. “Demand is outpacing supply, while power and supply chain shortages are reinforcing a power-first approach that prioritizes sites with the fastest path to power. Ultimately, unlocking additional supply will depend on power availability timelines, approvals for on-site generation, and greater investment in transmission infrastructure.”

CBRE found that the national average lease rate rose by 6.5% year-over-year to $194.95 per kW/month, the fourth straight annual increase. “While last year’s increase was modest compared to the double-digit percentage jumps seen since 2022, limited availability and rising construction costs are still pushing prices upward,” the report said.

But despite record demand, construction activity declined for the first time since 2020 due to extended timelines tied to permitting, zoning approvals and sourcing adequate power. Capacity under construction fell to 5,994.4 MW at year end from 6,350.1 MW at the end of 2024, CBRE reported.