JLL forecasts as much as $1 trillion in North American information heart funding from 2025–2030, with greater than 100 GW of capability doubtlessly delivered
In sum – what to know:
Emptiness at document low – Colocation emptiness dropped to 2.3% throughout 15.5 GW of stock, with Northern Virginia dominating and cloud corporations driving 65% of leasing.
Energy, not area, is the important thing constraint – Grid connections take 4 years and power prices rose almost 30% since 2020, pushing improvement into secondary markets like Salt Lake Metropolis and Denver.
Funding momentum accelerates – Knowledge heart asset values grew 161% since 2019, with $1 trillion in North American funding forecast between 2025 and 2030, pushed by AI, cloud and digital transformation.
The North American information heart sector is going through a deepening provide crunch as emptiness charges hit document lows regardless of a surge in new improvement, in accordance with JLL’s midyear 2025 North America information heart report.
The agency warns the market has reached a “crucial tipping level,” the place hovering demand, restricted energy, and prolonged construct timelines are forcing operators and enterprises to rethink methods.
Colocation emptiness has fallen to simply 2.3%, whilst put in capability rose to fifteen.5 GW. Northern Virginia continues to dominate with 5.6 GW—over thrice Dallas-Fort Price’s 1.5 GW. Cloud suppliers drove 65% of leasing exercise within the first half of 2025, in accordance with JLL.
“The colocation market is experiencing unprecedented demand strain,” mentioned Andy Cvengros, government managing director at JLL. He cited turbulence from points like DeepSeek and tariff issues however emphasised the sector nonetheless delivered “one other record-shattering efficiency.”
Within the first half of 2025, 2.2 GW was absorbed, matching or surpassing 2024’s document tempo, the JLL report added. Northern Virginia and Dallas-Fort Price led leasing with 647 MW and 575 MW respectively, adopted by Chicago (368 MW) and Austin/San Antonio (291 MW). Austin has grown almost 500% since 2020, with 900 MW dwell and 341 MW beneath development.
“The times of build-it-and-they-will-come are lengthy gone,” mentioned Matt Landek, division president for JLL U.S. information heart work dynamics. “Commit earlier than it’s constructed — otherwise you gained’t get in,” the manager added.
Electrical energy entry has turn out to be the defining constraint, the report famous, including that grid connections now take 4 years on common, whereas industrial charges have risen 30% since 2020 to 9.7 cents/kWh. Builders are shifting to secondary markets like Salt Lake Metropolis (5.7 cents/kWh) and Denver (6.4 cents/kWh), in accordance with JLL. Columbus has expanded capability by 1,800% since 2020, whereas Austin/San Antonio grew 500%.
“Energy has turn out to be the brand new actual property,” mentioned Andrew Batson, head of U.S. information heart analysis at JLL, predicting continued 20% CAGR development by means of 2030.
Wanting forward, JLL forecasts as much as $1 trillion in North American information heart funding from 2025–2030, with greater than 100 GW of capability doubtlessly delivered. Present deliberate improvement totals 31.6 GW, led by Northern Virginia (5.9 GW), Phoenix (4.2 GW), Dallas-Fort Price (3.9 GW), and Las Vegas/Reno (3.5 GW).
Regardless of a document 7.8 GW development pipeline, 73% of tasks are preleased, leaving little short-term reduction. JLL warns demand may speed up additional as AI and quantum computing adoption develop.
“The mix of AI, digital transformation and cloud migration has created an ideal storm,” Batson mentioned. “Ahead planning is now completely crucial.”
