Despite a wave of new supply, demand from AI uses is outpacing available data center space capacity, pushing vacancy rates toward historic lows, warned analysts at CBRE in its recent Global Data Center Trends report. Global supply reached 16 gigawatts (GW) in Q1 2026 across the 16 largest data center markets, up 25% over the past year. Yet even with supply growth in all major regions, average vacancy fell to 6.7% from 8.3% a year earlier, indicating tightening market conditions worldwide. Available capacity is “nearly nonexistent” in some U.S. hubs, said CBRE, resulting in “extreme scarcity of available space.”
“Across the globe, demand is outpacing even aggressive new supply increases, which means companies can no longer assume capacity will be available when they need it,” said Pat Lynch, Executive Managing Director, CBRE Data Center Solutions. “Occupiers are having to secure space earlier, take what’s available from a capacity standpoint and prioritize markets with dependable power to support long-term growth.”
While the global data center construction market is experiencing nearly 7% compound annual growth, according to the latest from Global Market Insights, the construction pipeline does not provide substantial supply relief, said the CBRE study. AI demand is prompting occupiers to seek out larger facilities to support high-performance computing. In turn, as of Q4 2025, 80% of the space under construction in the top four U.S. markets was already preleased.
At the same time, power availability and grid-infrastructure constraints are shaping where and how quickly new facilities can be built, particularly in major hubs such as Northern Virginia, Chicago, London and Frankfurt. In the U.S., longer construction timelines will limit data center supply through 2030, said CRBE.
Not surprisingly, the dynamics have led to higher prices. Chicago has the highest rental rates among major U.S. markets as of Q1 2026, ranging from $200 to $230 per kW per month for a 250-to-500-kW requirement, with rents increasing 14.7% from the previous year.
“Limited power, land and infrastructure are slowing development and keeping vacancy near zero in some key U.S. markets,” said Gordon Dolven, CBRE Head of Data Center Research, Americas. “These supply constraints will push pricing higher and shift new investment toward markets that can scale quickly.”
