Primary Market: Dallas/Ft Worth

Colocation Insights

• Emerging hyperscale activity in Dallas drove unprecedented leasing activity in 2022.
• Enterprise activity remains strong.
• Construction activity continues to skyrocket.
• Availability of large contiguous spaces of turnkey capacity in DFW continues to dwindle as leasing outpaces new construction.

Market Trends

• Supply has become significantly constrained due to leasing activity, with limited inventory available.
• South Dallas has become a new submarket of interest for data center developers.
• Power delivery timelines continue to be a lower concern than in other primary markets.

Notable Activity

• Leasing activity continues to grow in South Dallas, with several operators signing leases.
• Digital Realty’s Webb Chapel data center was purchased by Evoque.
• Aligned commenced construction on its expansion in Plano, TX, which will have 36 MW of power.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 3: % of Total Primary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 4: Market Fuel Mix

Source: EIA.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.