{"id":1004749759,"date":"2025-03-06T05:24:31","date_gmt":"2025-03-06T13:24:31","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004749759"},"modified":"2025-03-06T09:42:21","modified_gmt":"2025-03-06T17:42:21","slug":"this-market-tops-the-nation-for-data-center-absorption","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/","title":{"rendered":"This Market Tops the Nation for Data Center Absorption"},"content":{"rendered":"\n

For the first time, Northern Virginia is not the preeminent location for data center absorption, according to a new report from CBRE.<\/p>\n\n\n\n

Atlanta is the new leader in the amount of space leased compared to the amount vacated, achieving 705.8 megawatts of positive net absorption in 2024, according to the firm\u2019s North American data center trends report.<\/p>\n\n\n\n

Last year, Atlanta absorbed nearly 39 times more space than at year-end 2023 (18 MW). The market recorded the highest volume of colocation leasing activity ever, spurred by GPU-as-a-Service tenants.<\/p>\n\n\n\n

GPUaaS is a cloud-based service that allows on-demand access to high-performance graphics processing units, or GPUs.<\/p>\n\n\n\n

A colocation data center facility allows businesses to rent space to house their servers, networking equipment and storage devices. It will enable them to place their hardware in a third-party data center while maintaining ownership and control over their equipment, unlike a cloud service where the provider owns the infrastructure. <\/p>\n\n\n\n

Astounding numbers<\/h2>\n\n\n\n

The data center inventory numbers in the Atlanta market are astounding. Last year, it increased by 222 percent to 1,000.4 MW as the market accommodated demand by ramping up data center space under construction.<\/p>\n\n\n\n

In the year’s second half, the market saw 2,159.3 MW under construction, representing a 195 percent annual increase in under-construction totals. That tops the eight primary North American data center markets in CBRE\u2019s report<\/a>.<\/p>\n\n\n\n

\"Chart
Largest annual increases in under-construction totals. Chart courtesy of CBRE Research, CBRE Data Center Solutions, H2 2024<\/em><\/figcaption><\/figure>\n\n\n\n

As for new developments in the market, AWS plans to invest $11 billion in new data center development. Meanwhile, Lincoln Property Co.\u2019s acquisition of a DXC data center shows it plans to redevelop it into a 30 MW colocation facility.<\/p>\n\n\n\n

Ryan Mallory, Flexential\u2019s COO, told Commercial Property Executive<\/em> that Atlanta is emerging as the new \u201cdata center alley.\u201d<\/p>\n\n\n\n

GA Power\/Southern Co. recently brought the Vogtle reactors online, delivering approximately 4GW of power capacity and unlocking significant development potential, Mallory said.<\/p>\n\n\n\n

\n\n\n\n

READ ALSO<\/strong>: Data Center Demand Keeps Surging Despite Challenges<\/a><\/p>\n\n\n\n

\n\n\n\n

\u201cAdditionally, Georgia has implemented robust sales tax incentives to attract high-paying jobs to communities hosting data centers,\u201d he added. \u201cThis powerful combination of abundant power, available land and supportive communities has firmly placed Georgia on the technology map.\u201d<\/p>\n\n\n\n

However, Georgia is not the only market experiencing this surge.<\/p>\n\n\n\n

In Texas, markets such as Dallas-Fort Worth, Austin and San Antonio have grown remarkably in the past 24 months, according to Mallory.<\/p>\n\n\n\n

\u201cThese cities benefit from reliable power, a favorable tax environment, a high-quality workforce and communities that welcome the data center industry\u2014a sector known for its high-paying, low-impact nature,\u201d he said.<\/p>\n\n\n\n

Overall, the exceptional quality of the product and the availability of land and power differentiate the U.S. market, Mallory added. \u201cWith historically high-growth regions slowing or pausing data center development, there has never been a better time to be in the data center business in North America.\u201d<\/p>\n\n\n\n

\"Table<\/a>
Top 10 largest North American data center markets by under construction (MW). Table courtesy of CBRE<\/em><\/figcaption><\/figure>\n\n\n\n

CBRE said tax incentives, available land and greater power accessibility make markets such as Charlotte, Northern Louisiana and Indiana potential growth areas for hyperscale and colocation providers.<\/p>\n\n\n\n

This, despite some saying that Deep Seek might curb data center demand<\/a>.<\/p>\n\n\n\n

As for investment, CBRE reported that the average sale price increased year-over-year. Eleven asset sale transactions exceeded $90 million, while five surpassed $400 million.<\/p>\n\n\n\n

AI impacts data center project locations <\/h2>\n\n\n\n

\u201cAs the demand for data centers has increased significantly, we have seen a shift in where these projects are being developed,\u201d Todd Johnson, director of real estate development at Ryan Cos., told CPE<\/em>.<\/p>\n\n\n\n

\u201cTraditionally, data centers were situated near metropolitan areas to minimize latency, but newer AI models have reduced the need for this proximity. Now, data centers are being developed in more remote locations where there is ample power supply.\u201d<\/p>\n\n\n\n

\"Chart
Average asking rental rate with Y-o-Y change for primary markets. Chart courtesy of CBRE Research, CBRE Data Center Solutions, H2 2024<\/em><\/figcaption><\/figure>\n\n\n\n

Seeking more energy<\/h2>\n\n\n\n

Avison Young\u2019s data center market report for the fourth quarter of 2024 indicates that data center inventory continues to hit record highs in the U.S., with commissioned colocation power expanding nearly 50 percent over the previous 12 months. Yet, vacancy rates remain at historic lows, at just 1.6 percent.<\/p>\n\n\n\n

In 2024, CBRE stated that North America doubled the data center supply under construction compared to the previous year to a record 6,350.1 megawatts. This is a 12-fold increase from the 456.8 MW under construction in 2020.<\/p>\n\n\n\n

Given this growth, the energy needed to power these assets has become a focus.<\/p>\n\n\n\n

As power generation and transmission timelines continue to stretch with rising demand, more data center developers are considering self-generation as a temporary supplement or a long-term solution, according to Howard Huang, a market intelligence analyst with Avison Young.<\/p>\n\n\n\n

\u201cNatural gas is gaining traction due to its abundance, affordability and faster deployment compared to waiting on grid transmission while sidestepping many of the limitations of solar and wind.\u201d<\/p>\n\n\n\n

Andrew Batson, head of U.S. Data Center Research for JLL, told CPE<\/em> that the North American data center market reached unprecedented demand levels in 2024, with vacancy rates plummeting to record lows amid insatiable tenant demand and limited supply.<\/p>\n\n\n\n

JLL\u2019s research found that most markets have doubled or tripled since 2020.<\/p>\n\n\n\n

\u201cPower availability remains the primary challenge, with average wait times for grid connections extending to four years in most markets,\u201d Batson said.<\/p>\n\n\n\n

\u201cAs a result, data center development is expanding into new territories in search of power, with emerging markets seeing increased activity. In 2024, AI represented about 15 percent of data center workloads; by 2030, it could grow to 40 percent. AI will be a key source of growth for the sector.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s the first time any region surpasses Northern Virginia, according to CBRE\u2019s research.<\/p>\n","protected":false},"author":3568,"featured_media":1004749814,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1489,21755,21782,21808,23891,21742],"tags":[33022,32789,32796],"class_list":["post-1004749759","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-atlanta","category-data-centers","category-development","category-featured","category-national","category-latest","tag-avison-young","tag-cbre","tag-jll"],"acf":[],"yoast_head":"\nThis Market Tops the Nation for Data Center Absorption - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Atlanta is the nation\u2019s new leader for data center absorption in 2024, according to a new report from CBRE.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"This Market Tops the Nation for Data Center Absorption\" \/>\n<meta property=\"og:description\" content=\"Atlanta is the nation\u2019s new leader for data center absorption in 2024, according to a new report from CBRE.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2025-03-06T13:24:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-06T17:42:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/03\/Average-asking-rental-rate-evolution-for-primary-data-center-markets-CBRE.png\" \/>\n\t<meta property=\"og:image:width\" content=\"799\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Richard Berger\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/\",\"name\":\"This Market Tops the Nation for Data Center Absorption - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/03\/Average-asking-rental-rate-evolution-for-primary-data-center-markets-CBRE.png\",\"datePublished\":\"2025-03-06T13:24:31+00:00\",\"dateModified\":\"2025-03-06T17:42:21+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/6d4c5f1b2f682b3604ad9fe73c19fed7\"},\"description\":\"Atlanta is the nation\u2019s new leader for data center absorption in 2024, according to a new report from CBRE.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/03\/Average-asking-rental-rate-evolution-for-primary-data-center-markets-CBRE.png\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/03\/Average-asking-rental-rate-evolution-for-primary-data-center-markets-CBRE.png\",\"width\":799,\"height\":600,\"caption\":\"Average asking rental rate with Y-o-Y change for primary markets. Chart courtesy of CBRE Research, CBRE Data Center Solutions, H2 2024\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"This Market Tops the Nation for Data Center Absorption\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/6d4c5f1b2f682b3604ad9fe73c19fed7\",\"name\":\"Richard Berger\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/bf9a97027a74b606d01db57720228242e692d3db9d827930b02ed8baaf3623a4?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/bf9a97027a74b606d01db57720228242e692d3db9d827930b02ed8baaf3623a4?s=96&d=mm&r=g\",\"caption\":\"Richard Berger\"},\"description\":\"Richard Berger has 20+ years of experience covering commercial real estate for various media sites and CRE-related associations. He lives in Northern Virginia.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/richardberger\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"This Market Tops the Nation for Data Center Absorption - Commercial Property Executive","description":"Atlanta is the nation\u2019s new leader for data center absorption in 2024, according to a new report from CBRE.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/","og_locale":"en_US","og_type":"article","og_title":"This Market Tops the Nation for Data Center Absorption","og_description":"Atlanta is the nation\u2019s new leader for data center absorption in 2024, according to a new report from CBRE.","og_url":"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2025-03-06T13:24:31+00:00","article_modified_time":"2025-03-06T17:42:21+00:00","og_image":[{"width":799,"height":600,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/03\/Average-asking-rental-rate-evolution-for-primary-data-center-markets-CBRE.png","type":"image\/png"}],"author":"Richard Berger","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/","url":"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/","name":"This Market Tops the Nation for Data Center Absorption - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/03\/Average-asking-rental-rate-evolution-for-primary-data-center-markets-CBRE.png","datePublished":"2025-03-06T13:24:31+00:00","dateModified":"2025-03-06T17:42:21+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/6d4c5f1b2f682b3604ad9fe73c19fed7"},"description":"Atlanta is the nation\u2019s new leader for data center absorption in 2024, according to a new report from CBRE.","breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/03\/Average-asking-rental-rate-evolution-for-primary-data-center-markets-CBRE.png","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/03\/Average-asking-rental-rate-evolution-for-primary-data-center-markets-CBRE.png","width":799,"height":600,"caption":"Average asking rental rate with Y-o-Y change for primary markets. Chart courtesy of CBRE Research, CBRE Data Center Solutions, H2 2024"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/this-market-tops-the-nation-for-data-center-absorption\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"This Market Tops the Nation for Data Center Absorption"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/6d4c5f1b2f682b3604ad9fe73c19fed7","name":"Richard Berger","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/bf9a97027a74b606d01db57720228242e692d3db9d827930b02ed8baaf3623a4?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/bf9a97027a74b606d01db57720228242e692d3db9d827930b02ed8baaf3623a4?s=96&d=mm&r=g","caption":"Richard Berger"},"description":"Richard Berger has 20+ years of experience covering commercial real estate for various media sites and CRE-related associations. He lives in Northern Virginia.","url":"https:\/\/www.commercialsearch.com\/news\/author\/richardberger\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/03\/Average-asking-rental-rate-evolution-for-primary-data-center-markets-CBRE.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004749759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/3568"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004749759"}],"version-history":[{"count":8,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004749759\/revisions"}],"predecessor-version":[{"id":1004749878,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004749759\/revisions\/1004749878"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004749814"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004749759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004749759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004749759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}