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North America Data Center Report

Oct. 5, 2023
The first half of 2023 witnessed robust growth in the data center market; however, most major and secondary markets are struggling with a supply and demand imbalance, leading to a shortage of colocation space and rising pricing.

Looking ahead: The data center market is experiencing strong growth driven by hyperscalers, AI requirements, and the expansion of edge computing. Supply and demand imbalances have resulted in increased preleasing and extended timelines, requiring users to be in the market for capacity well in advance of their preferred go-live date. While AI demands mean increased demand for operators, they must adapt infrastructure to accommodate these needs and innovate for cooling and efficiency to meet sustainability goals. Despite interest rate volatility, investor demand remains high and will continue to attract diverse financing to fuel growth.

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