Q3 2025 U.S. data center market overview

The U.S. data center market continued its strong growth trajectory in Q3 2025, driven by accelerating AI infrastructure demand and large-scale hyperscale leasing. Development activity rebounded after a brief slowdown, while vacancy remained near record lows amid persistent power and land constraints. Investors and operators alike are increasingly focused on energy independence and efficiency, adopting on-site generation, liquid cooling, and edge deployments to meet rising density and reliability requirements. As power availability becomes the defining factor for scalability, data centers are evolving into industrial-grade energy ecosystems built for resilience and sustainable performance.

+1.7 GW

Inventory

After a brief slowdown in Q2 2025, the U.S. colocation data center development regained momentum in Q3, increasing by 1.7 gigawatts (GW) quarter over quarter (QoQ).

450 MW

Absorption

In Q3 2025, the Dallas-Fort Worth colocation market recorded its largest QoQ net absorption to date, cementing its position as the top growth market year to date and surpassing both Atlanta and Phoenix in total capacity.

1.6%

Vacancy

Data center demand remains exceptionally strong, with vacancy rates at historic lows. There are now 10 major markets below 1% colocation vacancy, including the top two markets, Northern Virginia, and Dallas-Fort Worth.

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