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Data Center Supply Surges Amid Power Constraints in North America

10/9/2025

29 4 Full Breakdown

Summary

Data Centers Surge

North America's data center supply rose 17.6% in early 2025, but power availability is a constraint.
Vacancy hit a record low of 1.6%, with 74.3% of new capacity under construction already preleased to artificial intelligence (AI) and cloud firms.
Investment slowed over 50% in H1 2025 amid uncertainty and power constraints; analysts expect a rebound as projects come to market.

Summary

Simons' AI Lease

Eric Simons, CEO of StackBlitz, announced a San Francisco lease, signaling artificial intelligence-driven recovery.
Silicon Valley AI firms have leased 5.2 million square feet since 2020.
Texas leads commercial real estate investment at $90 billion and added 28,000 construction jobs last year.
Bay Area offices shift to shorter leases and tech-enabled workplaces as AI firms lease 1 million square feet.

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Data Centers Surge

North America's data center supply rose 17.6% in early 2025, but power availability is a constraint.
Vacancy hit a record low of 1.6%, with 74.3% of new capacity under construction already preleased to artificial intelligence (AI) and cloud firms.
Investment slowed over 50% in H1 2025 amid uncertainty and power constraints; analysts expect a rebound as projects come to market.

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