Petroc Taylor
Research expert covering global developments in the use of data
Get in touch with us nowU.S. Data center inventory 2021-2024, by primary market
Northern Virginia is by far the largest data center market in the United States when measured by total inventory. The region had capacity of around 2,600 megawatts in the first half of 2024, a significant increase on the previous year. The Dallas/Ft. Worth region had the second-highest capacity, followed by Chicago.
Northern Virginia could face a slowdown in construction
Situated close to major east coast urban centers, the Northern Virginia region is considered a key hyperscale data center hub. The region had a reported 1,540 megawatts of data center capacity under construction as of the second half of 2023, far more than any other U.S. market. However, future expansion may be hindered by shifting local infrastructure conditions, with the growing impact of large-scale facilities leading local decision makers to reassess planning legislation.
Rental rates on the rise
The average monthly rental rate for data center capacity in primary U.S. markets surged to over $174 per kilowatt in 2024. This is partially due to increased demand, with digital transformation driving the adoption of cloud services, and with the adoption of data intensive artificial intelligence (AI) applications. However, data centers operators are also experiencing difficulties in data center construction, as rising utilities costs and supply chain continue to apply pressure.
