Demand for data center space continues to reach new heights as digital services pervade daily consumer and business activities. Data center leasing surged in 2022 to 2,250 megawatts (MW) of power in North America, following a previous high point of 950 MW in 2021, according to datacenterHawk. Now, the data center sector may face headwinds in trying to keep pace with demand for power and land in 2023, amid longer delivery timelines and shortages in key markets, Data Center Frontier posted in a recent blog.
Throughout 2022, hyperscale operators aggressively locked down capacity for long-term cloud services growth even as data center capacity construction is slowed by supply chain disruptions. Nonetheless, demand remains strong with hyperscale single leases averaging over 70 MW, and more data center lease transactions across a broader base of customers from enterprise to financial, gaming, and tech companies. Continue Reading
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