Data center demand outpaces record construction

What's happening

CBRE's North America Data Center Trends H1 2026 report found 7,481 megawatts under construction across eight primary markets, a 24.8% increase. Even so, more than 80% of that capacity is preleased, leaving about 1,500 MW available, roughly six months of supply at current demand.

Power delivery and approvals, not developer appetite, are now the main constraint, CBRE said. Atlanta passed Northern Virginia for the most capacity under construction, with nearly 2,900 MW.

• Under construction: 7,481 MW, up 24.8%.
• Preleased: More than 80%.
• Northern Virginia inventory: 4,496.5 MW, with 467.7 MW of absorption.
• Rents: Up 8.3% for 3–10 MW requirements.

What it means for owners, tenants and investors

Data center demand is reshaping land and power markets. Industrial sites with available electrical capacity are commanding premiums, and utility queues affect every large user. In Southern California, limited power and high land costs have kept large campuses elsewhere, but owners of industrial land with substation access or entitled power should understand that value. Traditional industrial tenants may also feel the competition for power upgrades and transformer equipment.

Investors should note that data center growth also affects nearby industrial markets through power allocation, construction labor and equipment costs. Owners of large industrial sites near high-capacity transmission may receive unsolicited interest, and understanding a site's power potential is now part of valuing it.

Power availability has become the deciding factor in where digital infrastructure gets built.

What to watch

Utility interconnection timelines and state policy on large-load tariffs will determine how much of the pipeline delivers on schedule.

Photo: Taylor Vick / Unsplash.