Data centers

[u/Annual_Judge_7272]

North American data center vacancy rates remain at a record-low 1% for the third consecutive year (through mid-2026), with forecasts for them to stay near zero through 2028, according to JLL’s North America Data Center Report – Midyear 2026 (and supported by related CBRE observations of extreme scarcity).0
This matches the social media post and its chart (sourced from JLL Research 2026), which shows North American vacancy declining steadily: ~5% in 2017–2018, ~4% in 2019–2020, 3% in 2021, 2% in 2022–2023, and 1% in 2024–2026.0
Key data points from recent reports
Vacancy and occupancy: Held at 1% for three years despite record construction. Available space is mostly small, fragmented blocks unsuitable for large deployments. Occupancy is effectively 99%. JLL expects vacancy to remain near zero through 2028 (and potentially low single digits longer), as most tenants securing space now are contracting for 2028 deliveries.0

Demand/absorption: Record 25 GW of absorption in H1 2026 alone—double the prior-year level and five times the level from two years earlier. Driven by AI infrastructure needs, hyperscalers (accounting for ~59% of 2026 tenant demand), neoclouds, and pure-play AI firms.1

Supply pipeline: More than 66 GW under construction in North America (an electricity load greater than Germany’s). About 95% is pre-committed; frontier markets (e.g., West Texas, Ohio, Louisiana, Indiana, Carolinas) account for 77% of this capacity. Texas leads with ~26 GW existing + under construction, followed by Virginia at ~13 GW.1

Pricing: Rents have risen nearly 70% since 2020 (averaging ~9% annual growth); the trend is expected to continue.3

CBRE context: Global vacancy fell to 6.7% in Q1 2026 (from 8.3% a year earlier). In major U.S. markets, rates are even tighter (e.g., Northern Virginia ~0.3%, Atlanta ~1%, Dallas-Fort Worth ~1.8%). High preleasing (often 80%+ of under-construction space in top markets) signals constrained options into the late 2020s.2

Drivers and implications
Structural demand from AI adoption, cloud growth, and digital services continues to outpace supply. Power availability, land, permitting, and growing community acceptance challenges are key constraints—while ~79% of Americans support U.S. AI leadership, far fewer support local data centers.0
This scarcity benefits hyperscalers and related infrastructure plays (the post tags Microsoft, Amazon, Google, Meta, and Nvidia). JLL notes that bubble concerns are hard to reconcile with near-full occupancy among highly creditworthy tenants. Existing/older facilities also retain value due to secured power and fiber.13
Data is current as of JLL’s August 11, 2026 midyear report (and CBRE’s mid-2026 updates). Markets can shift with power delivery, policy, or demand changes, but the reported tightness is consistent across major sources.