Intelligent Investment
Charlotte/Raleigh
North America Data Center Trends H1 2024
August 19, 2024 4 Minute Read
Colocation Insights
- CyrusOne announced plans to deliver more than 1 MW of additional capacity.
- Developers are now increasingly willing to build on spec in this historically build-to-suit market.
Market Trends
- Duke Energy remained willing to accommodate new customers but has been overloaded with requests for more capacity.
- Development activity is seemingly at an all-time high on sites when Duke Energy provides load scans.
- Initial interest from developers was in sites located near Microsoft in Catawba County. However, a shortage of available power has forced them to look in other areas.
- The few development sites in metro Charlotte are of great interest. Areas around the perimeter as far as the Triad and the South Carolina Upstate where power is available are also attracting interest.
Notable Activity
- T5 in Charlotte and CyrusOne in Durham were completing construction on final shell spaces in their respective buildings. T5’s building was 100% preleased and CyrusOne’s was at 50%.
- QTS is constructing new data centers in York, SC.
- Microsoft is constructing a new data center in Catawba County.
Figure 1: Historical Market Information
Figure 2: Historical Supply and Demand
Figure 3: % of Total Secondary Market Inventory
Figure 4: Market Fuel Mix
Figure 5: Average Asking Rates
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Continued preleasing activity kept vacancy rates historically low.
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Preleasing hit a record-high 94.5% of MW under construction.
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Rental rates continued to rise as the vacancy rate was near zero.
Related Service
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