Data center real estate - statistics & facts

Which are the largest data center markets worldwide?

Undeniably, the largest data center market in the world is the United States. In 2020, North Virginia, which is the data center capital of the U.S., boasted close to 1,377 megawatts of power capacity or nearly half of the total inventory of the top seven markets: Northern Virginia, Dallas/Ft. Worth, Silicon Valley, Chicago, Phoenix, New York Tri-State, and Atlanta. In comparison, Europe’s largest market, London, had 710 megawatts of data center power supply. Other major European markets are Frankfurt, Amsterdam, Paris, and Dublin. Looking at the Asia Pacific region, Tokyo led the ranking with 738 megawatts of live data center power supply, followed by Shanghai, and Singapore.

Focus on the U.S. market

Data center investment in the U.S. peaked in 2017 at 11.5 billion U.S. dollars but has since maintained lower levels. Nevertheless, the market continues to grow, with almost 458 megawatts of power supply under construction in 2020. As tempting as it may be to think that data center demand is set to only grow in the future, the reality is not so simple. In fact, the development of the sector will largely depend on the priority that businesses are giving to digitalization and IT services. Despite rental rates in U.S. data centers becoming more affordable each year, 2020 saw a slight fall in demand from 2019. This can be explained by budget cuts due to the coronavirus (COVID-19) crisis.

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