By Real Estate Daily News
PHOENIX – (August 28, 2024) – Phoenix’s data center supply grew by 150.8 megawatts (MW) in the first half of the year as developers delivered more capacity to meet growing demand, according to CBRE’s latest North American Data Center Trend Report.
Phoenix’s total inventory increased to 510.0 MW (a 44% increase year over year), leaping ahead of Silicon Valley for the first time to rank fourth largest among primary North American data center markets. The market shows no signs of slowing down, with 334.3 MW of product currently under construction in the Valley—the most since 2016.
Phoenix’s vacancy rate edged slightly down from last year’s second half to 3.3%, much in part to the 148.1 MW of positive absorption in H1 2024, a 238% increase year over year. Rental rates remained firm due to reductions in available supply and power. Lease renewal rental rates increased by as much as 20%.
