Key Insights

• Wholesale data centers in primary U.S. markets recorded 134.9 megawatts (MW) of net absorption in H1 2020.
• New inventory in primary markets grew by 5% in H1, raising the H1 2020 total to 131.1 MW and bringing the total overall footprint of the primary wholesale colocation market to more than 2.7 gigawatts (GW).
• More than 373 MW of capacity was under construction across primary markets in H1 2020, with Northern Virginia accounting for the lion’s share at 239 MW. More than 100 MW has broken ground so far this year, increasing the pipeline of new deliveries.
• Increased competition in primary markets led to a 5.8% drop in wholesale colocation asking rates for 250 to 500 kilowatt (kW) requirements this year to an average of $121 per kW/month, compared with $129 in 2019.
• Northern Virginia accounted for 69% of the 134.9 MW of total absorption among primary markets in H1.
• Data centers have been one of the real estate sectors least affected by COVID-related issues and the recession, highlighting their critical role in supporting continued business activity.