North American Data Center Growth Hits Record Highs Amid Power Shortages

The North American data center market achieved record growth in 2025, fueled by surging demand for artificial intelligence, cloud computing, and e-commerce. According to reports from CBRE, users across eight primary markets absorbed 2,497.6 megawatts, a 38% increase over 2024, which drove vacancy rates to a historic low of 1.4%. While Northern Virginia remains the national leader, secondary markets like central Washington have seen significant surges, with capacity there surpassing 400 megawatts in 2025 due to low-cost hydropower and tax incentives.

Despite the demand, total capacity under construction declined for the first time since 2020, falling to 5,994.4 MW by the end of 2025. This slowdown is attributed to permitting, zoning, and power-procurement hurdles. Grid-power capacity in most U.S. markets is largely committed through 2030, prompting developers to adopt onsite power solutions such as natural gas generators, wind turbines, and hydrogen fuel cells. This infrastructure strain is shifting some development toward markets with more flexible permitting, such as Nevada, Pennsylvania, and Michigan.

Major technology firms continue to scale their footprints. Amazon CEO Andy Jassy announced plans to invest approximately $200 billion in capital expenditures for AI, chips, robotics, and satellites across the company in 2026. The Electric Power Research Institute projects that data centers could account for 9% to 17% of total U.S. electricity usage by 2030.