Key Insights

• Overall wholesale data center inventory increased by 468.7 MW across primary markets in 2019, up 22% year-over-year.
• Net absorption across all primary markets reached an all-time high of 376.6 MW in 2019.
• Expansions by cloud service providers in 2019 resulted in new data center deliveries. While “cloud first” initiatives remain top of mind for end users, demand for colocation and on-premise space remains strong.
• Under construction capacity in primary markets decreased in 2019. At year end, 288.5 MW was under construction, compared with 502.0 MW in 2018. The decrease is partially due to many of these projects delivering in 2019.
• Average rental rates for wholesale colocation space fell slightly in 2019 as providers sought to differentiate themselves from their competitors. In primary markets, rates averaged between $115 and $139 compared with $121 and $141 in 2018 (250 to 500 kW pricing).
• Northern Virginia remained a clear outperformer and accounted for 64.2% of primary market absorption in 2019 (254.6 MW).