JLL forecasts up to $1 trillion in North American data center investment from 2025–2030, with more than 100 GW of capacity potentially delivered
In sum – what to know:
Vacancy at record low – Colocation vacancy dropped to 2.3% across 15.5 GW of inventory, with Northern Virginia dominating and cloud firms driving 65% of leasing.
Power, not space, is the key constraint – Grid connections take four years and energy costs rose nearly 30% since 2020, pushing development into secondary markets like Salt Lake City and Denver.
Investment momentum accelerates – Data center asset values grew 161% since 2019, with $1 trillion in North American investment forecast between 2025 and 2030, driven by AI, cloud and digital transformation.
The North American data center sector is facing a deepening supply crunch as vacancy rates hit record lows despite a surge in new development, according to JLL’s midyear 2025 North America data center report.
The firm warns the market has reached a “critical tipping point,” where soaring demand, limited power, and lengthy build timelines are forcing operators and enterprises to rethink strategies.
Colocation vacancy has fallen to just 2.3%, even as installed capacity rose to 15.5 GW. Northern Virginia continues to dominate with 5.6 GW—over three times Dallas-Fort Worth’s 1.5 GW. Cloud providers drove 65% of leasing activity in the first half of 2025, according to JLL.
“The colocation market is experiencing unprecedented demand pressure,” said Andy Cvengros, executive managing director at JLL. He cited turbulence from issues like DeepSeek and tariff concerns but emphasized the sector still delivered “another record-shattering performance.”
In the first half of 2025, 2.2 GW was absorbed, matching or surpassing 2024’s record pace, the JLL report added. Northern Virginia and Dallas-Fort Worth led leasing with 647 MW and 575 MW respectively, followed by Chicago (368 MW) and Austin/San Antonio (291 MW). Austin has grown nearly 500% since 2020, with 900 MW live and 341 MW under construction.
“The days of build-it-and-they-will-come are long gone,” said Matt Landek, division president for JLL U.S. data center work dynamics. “Commit before it’s built — or you won’t get in,” the executive added.
Electricity access has become the defining constraint, the report noted, adding that grid connections now take four years on average, while commercial rates have risen 30% since 2020 to 9.7 cents/kWh. Developers are shifting to secondary markets like Salt Lake City (5.7 cents/kWh) and Denver (6.4 cents/kWh), according to JLL. Columbus has expanded capacity by 1,800% since 2020, while Austin/San Antonio grew 500%.
“Power has become the new real estate,” said Andrew Batson, head of U.S. data center research at JLL, predicting continued 20% CAGR growth through 2030.
Looking ahead, JLL forecasts up to $1 trillion in North American data center investment from 2025–2030, with more than 100 GW of capacity potentially delivered. Current planned development totals 31.6 GW, led by Northern Virginia (5.9 GW), Phoenix (4.2 GW), Dallas-Fort Worth (3.9 GW), and Las Vegas/Reno (3.5 GW).
Despite a record 7.8 GW construction pipeline, 73% of projects are preleased, leaving little short-term relief. JLL warns demand could accelerate further as AI and quantum computing adoption expand.
“The combination of AI, digital transformation and cloud migration has created a perfect storm,” Batson said. “Forward planning is now absolutely critical.”
