Secondary Market: Hillsboro

Colocation Insights

• At 64.4 MW of absorption in 2022, Hillsboro saw the most demand of any secondary market.

Market Trends

• Available land is scarce due to recent hyperscale demand. Forest Grove has emerged as a popular submarket due to power and land availability.
• Data center providers are land-banking available sites to expand their footprint.

Notable Activity

• Aligned Data Centers expanded into the Pacific Northwest, announcing a two-building 108 MW data center campus in Hillsboro. The initial building is expected to be 72 MW. The second building is expected to be 36 MW.
• Flexential partnered with developer T5 Data Centers on a 54 MW expansion of its Oregon location.

Figure 1: New Market Development Information

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

Figure 2: New Market Inventory and Vacancy

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

Figure 3: % of Total Secondary Market Inventory

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

Figure 4: Market Fuel Mix

Source: Portland General Electric.

Figure 5: Average Asking Rates

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