According to CBRE’s North America Data Center Trends report, the New York Tri-State area has experienced a strong demand for data center space in the first half of 2023. This has resulted in a low vacancy rate of 9.8%, with major operators reporting minimal vacancies. The most active lessees during this period were financial services companies and artificial intelligence operators.
However, supply chain challenges have caused delays in construction completions, exacerbating the shortage of available space. Despite this issue, pricing remains resilient and continues to increase steadily for various kW and MW requirements.
The report also notes that there is currently high levels of data center construction taking place due to strong demand from all users, particularly those utilizing AI applications.
In H1 2023, the New York Tri-State area was ranked among the top ten most active data center markets with a total inventory of 177.5 MW and an additional 99.9 MW under construction.
