2022 Data Center Real Estate Acquisitions Report

Data center real estate acquisition activity for 2022 totaled approximately $4 Billion of transactions totaling 8.33 M total square feet. In comparison, 2021 full year activity was $4.56 Billion of transasctions and 11.4 M total square feet.

Data center leasing was off-the-charts with the most absorption recorded in a year with the vast majority of activity related to new many-MW hyperscale data center campuses in the major data center markets including NOVA, Phoenix, Dallas, Silicon Valley, Atlanta and Chicago.

Cap rates gradually rose during the year as a result of increased borrowing costs related to multiple interest rates increases. Cap rates heading into 2023 averaged nearly 1% higher than early 2022.