Intelligent Investment
Primary Market: Silicon Valley
North America Data Center Trends H2 2022
2023 年 02 月 17 日 4 分鐘 閱讀
Colocation Insights
- Cloud service providers continue to dominate, although the area has seen a resurgence of enterprise demand.
- Limited land and ability to deliver power has led some providers to neighboring areas like San Jose & the East Bay.
Market Trends
- The city of Santa Clara’s power utility Silicon Valley Power is constrained.
- Developers are buying remaining sites with long-term investment intentions, and land banking for the near-term to wait for power delivery.
- Transmission substation sites can’t be energized until 2028-2029.
- The vacancy rate has risen 2.3%. Increases in vacancy can be attributed to consolidation from second-generation space, and a shift to cloud.
Notable Activity
- NTT/RaginWire SV1 is now 100% leased.
- GI Partners, EdgeCore and CyrusOne each announced new developments beginning this or next year.
- Projects under construction in Santa Clara:
- 435,050-sq.-ft. 48-MW data center by Digital Realty
- 121,000-sq.-ft. 9-MW facility by Prime Data Centers
- 560,000-sq.-ft. 60-MW building by Skybox Data Centers
- 450,000 -sq. ft. 32-MW facility by Vantage Data Centers.
- Digital Realty is targeting delivery of the first 8 MW at 641 Walsh Ave in Q1 2024
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: Silicon Valley Power.
Figure 5: Average Asking Rates
Source: CBRE Research, CBRE Data Center Solutions, H2 2022.
Explore Markets
Hyperscale demand remains strong. Oracle, Facebook and Microsoft all have a large presence in the area, with AWS looking to grow their presence.
Emerging hyperscale activity in Dallas drove unprecedented leasing activity in 2022.
Rental rates increased up to 20% over the trailing 12 months.
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