Petroc Taylor
Research expert covering global developments in the use of data
Get in touch with us nowData center average rental rate in the U.S. 2013-2024
The average monthly rental rate for data center capacity in primary markets in the United States rose sharply to over 174 U.S. dollars per kilowatt in the first half of 2024. The surge in rental rates reflects the increasing pressure on data center capacity due to rising demand and supply chain constraints.
Northern Virginia leads the U.S. data center market
As of the second half of 2023, the Northern Virginia region boasted the lowest data center vacancy rate among major markets in North America at just 0.8 percent. Spread across Loudon, Fairfax, Fauquier, and Prince William Counties, the region has long been a leading data center hub, with hyperscale operators attracted by favorable local infrastructure conditions and proximity to major metropolitan areas.
Challenges and opportunities in data center construction
The second half of 2023 saw 1,540 megawatts of data center capacity under construction in Northern Virginia. However, the market could face limitations in future expansion, with the growing impact on local resources prompting local officials to rethink approaches to data center planning processes. Meanwhile, the Portland and Eastern Oregon region has emerged as an important west coast hub. Sometimes referred to as the Silicon Forest, the region has a reported 542 megawatts under construction as of the second half of 2023.
