North America Added a Whole Silicon Valley’s Worth of Data Center Inventory This Year

North America’s eight primary data center markets added 515 megawatts (MW) of new supply in the first half of 2024 — the equivalent of Silicon Valley’s entire existing inventory — according to a new report real-estate services firm CBRE. From a report: All of Silicon Valley has 459 MW of data center supply, while those main markets have a total of 5,689 MW. That’s up 10% from a year ago and about double what it was five years ago. Data center space under construction is up nearly 70% from a year ago and is currently at a record high. But the vast majority of that is already leased, and vacancy rates have shrunk to a record low of 2.8%. In other words, developers are building an insane amount of data center capacity, but it’s still not enough to meet the growing demands of cloud computing and artificial intelligence providers.