By Michael Gerrity | World Property Journal
North America’s data center colocation market is straining under unprecedented demand, with vacancy rates plunging to just 2.3%, according to JLL’s North America Data Center Report – Midyear 2025. Total inventory has reached a record 15.5 gigawatts (GW), but capacity constraints and energy shortages are intensifying, even as the sector continues its rapid expansion.
Northern Virginia remains the continent’s largest hub with 5.6 GW–more than triple Dallas-Fort Worth’s 1.5 GW. Cloud giants and major tech firms account for roughly 65% of leasing activity, cementing hyperscalers’ dominance in the market.
“The colocation market is under unprecedented demand pressure,” said Andy Cvengros, Executive Managing Director at JLL. “Despite early-year disruptions, including the DeepSeek event and tariff concerns, the sector posted another record-shattering performance.”
