Utility Dive: Data center supply, construction surged in 2024 amid AI boom
5 Mar 2025
News
Surging demand from organizations’ use of AI is driving the record data center development, CBRE says.
The demand is giving AI-related occupiers increasing influence over data center development decisions like site selection, design and operational requirements. These occupiers are “prioritizing markets with scalable power capacity and advanced connectivity solutions,” the report says.
Demand is also showing up in pricing trends.
Last year was the third consecutive year of pricing increases for 250-to-500-kW slots in primary markets, CBRE said. Following steady single-digit annual declines from 2015 to 2021, average pricing rose 14.5% in 2022, 18.6% in 2023 and 12.6% in 2024.
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