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08/14/18 Five 9s Digital Research

2018 US Data Center Mid-Year Update


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Significant US Data Center Absorption Seen in 2018

As of mid-year 2018, the US data center sector has experienced significant absorption in the major US data center markets setting up for a record year of leasing. So far, over 200 MWs have been leased with the majority of absorption being from the hyperscale cloud providers and social media companies. Northern Virginia (NOVA) has racked up over 120 MWs of absorption alone this year. The major markets include Northern Virginia, Chicago, Dallas, Atlanta, Phoenix, New York/New Jersey and Silicon Valley.

Noteworthy activity has been seen in some of the secondary data center markets including San Antonio/Austin, Denver, Los Angeles, Reno and the Northwest.

US Data Center Market Report 2018

The San Antonio/Austin data center market is a standout with a significant uptick in activity posting over 9 MWs of absorption so far this year far exceeding historical annual activity.

As the year plays out, we anticipate continued absorption from the hyperscale cloud providers in the major markets with some continued transition to the secondary markets.

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