Anthropic · Hong Kong · U.S. · Singapore · Datacenter Dynamics
CBRE: Global data center demand continues to outstrip supply, driving up rental rates and construction costs
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Global data center supply grew across all regions year-over-year in the first quarter of 2026, but demand continues to outstrip supply, and rental rates and construction costs have risen considerably, according to a commercial real estate services firm, CBRE.
Key facts
- Rental rates in North America increased more moderately than over the previous period, the highest increase being in Chicago at a 14.7 percent increase, whose rates ranged from $200 to $230 per
- Rental rates in the region remained stable, with average rents in Singapore, Tokyo, and Sydney sitting at $403 per kW/month, $280, and $188, respectively
- Rental rates in Latin America remained stable, with São Paulo offering the lowest pricing at $130 to $190 per kW/month
- While Northern Virginia remains the biggest data center market in the world, adding another 1.13GW of capacity year-over-year, Dallas-Fort Worth jumped two spots to become North America’s
Summary
CBRE’s annual Global Data Center Trends report found that Latin America led inventory growth at 41.3 percent, with North America taking second place at 33 percent. Despite extraordinary growth delivering new supply, demand from AI startups, neoclouds, and hyperscalers have ensured vacancy rates maintain lows, and in certain US states, such as Northern Virginia and Atlanta, vacancy rates have dropped to record lows of 0.3 percent and one percent, respectively. Power availability and grid constraints are curbing development timelines in established hubs and core markets, while public opposition is also limiting supply, CBRE said.