New research released by datacenterHawk shows campus development continues to be a major driver for the North American market.
According to the 3Q 2023 Data center Market Recap, the region’s developers are opting to purchase large plots of land up to thousands of acres for long-term project planning.
The research also reveals absorption remains high across the region – said to reflect the demanding requirements for AI and cloud growth.
However, the rising demand for space and decrease in vacancy has led to increased costs.
To overcome these challenges, datacenterHawk projects North America will see a higher spend of speculative capital and a greater growth in its submarkets.
Overall, the recap reports 1.4 GW of absorption and continued growth across global data center markets and power supply challenges worldwide.
Major Asian-Pacific (APAC), Europe, Latin America (LATAM) markets also experienced significant growth and absorption in 3Q, following datacenterHawk’s 2Q 2023 report of 1.7 GW for the first half of 2023.
Leveraging its proprietary standardized method, the datacenterHawk team provides real-time data to monitor trends and pricing across more than 35 markets in North Americas, LATAM, APAC and Europe.
“The global data center industry is experiencing strong growth throughout 2023 with increasing demand and the rise of AI requirements leading the development of new submarkets and opportunities in established and emerging regions,” said David Liggitt, Founder and CEO at datacenterHawk.
“We aim to help make sense of how these markets can best overcome challenges and where that might lead to future opportunities in a period of tremendous growth for the industry.”
