Record vacancy lows and the pre-lease wall

Data center supply has never been tighter in primary North American markets. Vacancy — the share of available capacity not under lease — has fallen to record lows, compressing the window for operators who need space on a defined timeline.

1.4%

primary-market data center vacancy, a record low

80.4%

of primary-market capacity under construction already preleased

The pre-lease phenomenon is not new, but the scale is. When more than four-fifths of capacity under construction is already committed, the remaining pipeline represents a fraction of forward demand. CBRE estimates that available future capacity under 1,500 MW represents roughly six months of demand absorption at current rates.

~6 mo

of demand represented by remaining available future capacity (under 1,500 MW)

Rental rates reflect the squeeze. Average rates for 3–10 MW deployments grew 8.3% in the first half of 2026 — a meaningful move in a market where power cost, not rent, often drives total occupancy expense.

+8.3%

average rental rate growth for 3–10 MW deployments in H1

For land strategy, tight supply means buyers are planning further ahead. Operators signing pre-leases on capacity that will not deliver for two to three years are simultaneously sourcing land and power for the tranche after that. The land market is no longer reactive to current vacancy — it is anticipatory.

Landowners sitting on parcels near transmission should understand that timing matters as much as location. A site that reaches SRL 4 in 2027 may attract multiple qualified buyers. The same site at SRL 2 in 2029 may find the market has moved on to already-committed capacity.