Data Center Demand Doubles as Frontier Markets Surge

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North American data-center absorption reached 25 GW in the first half of 2026, double the year-earlier level and five times H1 2024.

More than 66 GW is under construction, yet JLL reports vacancy at just 1% as hyperscalers and AI firms prelease new capacity.

Frontier markets now represent 77% of the construction pipeline, with Texas, Ohio, Louisiana, the Carolinas, and other power-rich regions gaining share.

North American data-center demand is outrunning a record construction boom and redrawing the industry's development map. Bisnow's review of new JLL and CBRE data says first-half absorption reached 25 GW. That is double the prior-year level and five times H1 2024. More than 66 GW is under construction across North America. JLL says that pipeline is large enough to more than double existing inventory.

JLL describes the current pipeline as extraordinary. The 66 GW under construction represents more electricity demand than all of Germany. CBRE's separate review of North America's eight largest primary markets also found a record construction pipeline.

Capacity under construction in those primary markets rose 24.8% during the first six months of 2026. The total surpassed the previous record by more than 1 GW. The pipeline is now roughly 12 times larger than it was in 2021.

JLL's market team said demand continues to exceed even industry expectations. The scale of the pipeline confirms how aggressively developers are responding, but the absorption figures show new supply is still arriving behind tenant requirements.

New capacity is being committed before delivery. JLL puts North American vacancy at just 1%. CBRE reports primary-market vacancy at 1.4%, down from 1.6% a year earlier. That is a record low.

Available supply is mostly limited to small, fragmented blocks. Large users often need dozens or hundreds of megawatts. CBRE says more than 80% of under-construction capacity in primary markets is already committed. Less than 1.5 GW remains available.

Preleasing explains why construction has not translated into more choice for large tenants. Most future capacity is spoken for long before completion, especially in the primary markets tracked by CBRE.