The vacancy rate in colocation data centers across North America dropped to an all-time low of 2.6% as of the end of 2024, according to new research from JLL.
This drop came despite several years of record-high construction levels, JLL reported in its year-end 2024 North American Data Center Report. According to JLL, end users are struggling to find any available blocks of colocation space larger than 5MW across North America.
The demand for data center space remains strong, with JLL reporting that second-generation space that becomes available is leased within weeks. Nearly 6.5 GW of space is under construction now, of which 72% is pre-leased.
And in another sign of how difficult it can be to land data center space? Tenants looking to lease any sizable amount of data center capacity must wait 24 months on average.
Part of the challenge for end users is that it can take a long time to build a data center because of equipment lead times.
JLL reported that the average lead time for data center equipment in North America is 28 weeks. This is lower than the average lead time of 64 weeks during 2022, but is still a long time for developers to wait for equipment.
