CBRE: Most Data Center Markets Face Low Supply, Construction Delays, Power Shortages In Wake of AI

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CBRE: Most Data Center Markets Face Low Supply, Construction Delays, Power Shortages In Wake of AI

CBRE's Global Data Center Trends 2024 analysis highlights the impact of a worldwide power shortage on the data center market's growth, particularly in the wake of the AI boom. The report emphasizes the challenges faced by data center operators in sourcing power, leading to increased rental rates globally. Secondary markets with ample power are now attracting significant data center investments.

The study by CBRE reveals that the AI advancements and growing demand for HPC are driving the need for rapid innovation in data center design and technology to manage rising power density requirements. Pricing for data center capacity is on the rise due to the power shortage, with vacancy rates in key markets like Northern Virginia, Chicago, and Singapore reaching record lows. Companies are facing difficulties in securing data center capacity amidst the increasing demand.

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