The North American data center market is undergoing a seismic shift. Driven by the rapid adoption of artificial intelligence (AI) and the continued expansion of cloud computing, demand for data center space has never been higher. Industry reports indicate that despite record levels of new construction, data center vacancy rates are at an all-time low, and the ability to secure capacity is becoming an increasingly complex challenge. 

At the heart of this transformation is a significant shift in how enterprises and hyperscalers plan for their future infrastructure needs. With data center space at a premium, preleasing has emerged as a key strategy to secure capacity in an environment where availability is dwindling. 

Unprecedented Demand for Data Center Capacity 

The numbers tell the story. According to CBRE’s 2024 North America Data Center Trends Report and their North America Data Center Trends H2 2024 report, data center construction activity reached new heights in the first half of 2024: 

• 6,922.6 MW of new supply was added across primary markets— a 34% jump year-over-year. 
• Vacancy rates have fallen to a record-low 1.9%, dropping from 3.3% in early 2023, indicating that new supply is being absorbed almost immediately. 
• Of the 3,871.8 MW currently under construction in primary North American markets, nearly 80% has already been pre-leased, leaving very little availability for companies still searching for capacity. 

These figures highlight a market that is not just growing, but actively outpacing supply expansion. As more organizations rush to secure their digital infrastructure, companies without a long-term strategy risk being left behind. 

Cloud and AI: The Primary Drivers of Expansion 

There are two forces primarily responsible for this unprecedented demand: 

1. The Expansion of Cloud Computing 
   Cloud services continue to be a major driver of data center growth. Enterprises are increasingly migrating workloads to the cloud, requiring more physical infrastructure to support hyperscale cloud environments. Major providers—AWS, Microsoft Azure and Google Cloud—are aggressively expanding their footprints, consuming significant portions of new capacity before it even becomes available. 
2. The Rise of AI and High-Density Compute 
   AI-driven workloads, particularly large-scale machine learning models and generative AI applications, require far greater computing power than traditional workloads. AI data centers must support high-density, power-hungry GPUs and specialized hardware, which places additional strain on existing data center capacity. 

The industry is already feeling the pressure. In many regions, power availability has overtaken location as the primary concern for new data center development. This shift underscores the immense infrastructure demands of AI workloads and how they are reshaping the market. 

The Challenges of Meeting Demand 

Despite the surge in construction, there are significant obstacles to meeting demand, including: 

• Power Constraints – Data centers are energy-intensive, and the race to deploy AI and cloud infrastructure is putting significant strain on power grids. In some markets, the availability of power now determines where new data centers can be built. 
• Land & Zoning Restrictions – Prime locations for data centers are becoming harder to find, as municipalities impose stricter zoning laws, and land prices continue to rise. 
• Supply Chain Delays – The industry still faces challenges in acquiring critical components like transformers, cooling systems and backup generators, slowing the pace of new builds. 

The Critical Role of Preleasing in a Competitive Market 

Given these constraints, preleasing is now an essential strategy for enterprises looking to secure data center space. The traditional “wait and see” approach is no longer viable. If your organization needs capacity in the next few years, planning ahead is the only way to guarantee access to space and power. What’s more, it’s crucial to begin considering not just the next 12-18 months, but the next 24-36 of your infrastructure needs.  

Preleasing allows companies to: 

• Lock in future capacity before it becomes unavailable. 
• Ensure power availability at a time when electrical infrastructure is becoming a bottleneck. 
• Align infrastructure with long-term growth and AI adoption strategies. 

Why Sabey Data Centers? 

As a long-standing leader in the data center industry, Sabey Data Centers offers preleasing opportunities that align with your organization's growth strategy. We provide enterprise and hyperscale customers with reliable, scalable solutions built for the future. 

What sets us apart? 

• Vertical Integration – We oversee everything from design and construction to ongoing operations, giving customers a seamless, end-to-end data center solution. 
• Operational Maturity – With decades of experience, we have fine-tuned our operations to deliver the highest reliability and efficiency. 
• Sustainability Initiatives – Our commitment to environmentally responsible data center operations ensures energy-efficient infrastructure that aligns with ESG goals. 

In a rapidly evolving digital landscape, securing data center space is no longer an option—it’s a necessity. If your organization is planning for cloud expansion, AI adoption or future-proofing its IT infrastructure, preleasing with Sabey Data Centers ensures you have the space and power you need, when you need it. 

Learn More About Preleasing Opportunities