extended timelines for power delivery and wait times of 36 months or more for electrical equipment such as transformers, generators and switchgear.” The power demand of artificial intelligence is a key influence on site selection as occupiers prioritize sites with power available in the next 18 to 24 months, a short timeframe in the current market, said CBRE. Sites with access to power are attracting attention from developers and investors regardless of location, which is a shift from previous years. Markets in North Carolina, Northern Louisiana and Indiana are positioned for significant growth due to greater power accessibility, available land and tax incentives. Alternative power sources, particularly nuclear, are being evaluated as potentially viable solutions to meet rising demand, said CBRE. Primary market net absorption jumped from 329.6 MW in 2020 to 1,809.5 MW in 2024 – a whopping 450 percent increase in just four years. In 2024, Atlanta emerged as the national leader in net absorption, achieving 705.8 MW of positive net absorption — nearly 39 times higher than year-end 2023 (18 MW). Notably, this is the first time any primary market has surpassed Northern Virginia in net absorption since CBRE began tracking the sector. Despite being outpaced in overall net absorption, Northern Virginia remained the largest data center market with 2,930.1 MW of total inventory, 17 percent larger than a year prior due to robust construction. Northern Virginia recorded 451.7 MW of total absorption in 2024. Two markets in particular experienced significant increases in inventory in 2024 from the prior year: Atlanta (1,000.4 MW total inventory, a 222 percent increase) and Phoenix (602.8 MW total inventory, a 67 percent increase). Other notable markets include Dallas Fort-Worth, where developers have 605.6 MW currently under construction with 87 percent of that new supply released. This new supply could double the size of the Dallas Fort-Worth market by the end of 2026. The national building boom extended to secondary markets such as Austin, where there is 463.5 MW of supply under construction. “In 2025 we expect new markets to emerge that can offer quicker access to power,” said Gordon Dolven, director of Americas Data Center Research at CBRE. “We are monitoring all types of power generation sources, including natural gas, solar, wind, geothermal, and nuclear power.” o 47 MARCH - APRIL 2025 | CHANNELVISION
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