“The adoption and use of digital applications will continue to drive demand for data centers due to increasing storage, computation and processing of data,” reports CBRE.
The majority of the new buildings are already in use
CBRE data shows that “nearly 80%, or 3,056.4 of the 3,871.8 MW under construction, had already been allocated.” Cloud providers continue to lease most of the available power capacity, according to CBRE, but it notes that AI providers also account for a “significant share of demand.”
The trend toward early leasing will “force tenants to pre-lease space two to four years before completion to meet their future data center needs,” reports CBRE.
There is a shortage of available energy
Power availability remains an important consideration when choosing data center locations, and power delivery times will “continue to lengthen in the second half of 2024 due to a shortage of readily available equipment such as transformers, switches and generators,” the CBRE report said.
CBRE also points out that longer lead times for electrical infrastructure are delaying construction completion and that overall it is difficult to procure key equipment, leading to delivery delays of up to four years.
New markets are emerging
As land and power availability in primary markets becomes increasingly scarce, more and more cities are emerging as potential locations for new data centers.
