North America Data Center Report Midyear 2026

Vacancy remains at 1% for the third consecutive year, despite unprecedented construction. This reflects structural demand driven by our growing reliance on digital services and AI adoption.

Available capacity is limited to small, fragmented blocks. Most tenants securing space today are contracting for 2028 deliveries, underscoring the depth and durability of forward demand.

Limited data center capacity can constrain business growth, digital innovation and economic competitiveness. It also threatens AI leadership and the digital infrastructure supporting critical services and national security.

Concerns about a potential bubble should be viewed in the context of 99% occupancy, particularly when the largest data center tenants rank among the world’s most profitable and highest-rated companies.

More than 66 GW of data center capacity is under construction in North America, an extraordinary volume. For context, this represents an electricity requirement greater than Germany, a country with ~84 million people and a ~$4.7 trillion economy.

Today, 77% of this capacity is being built in frontier markets. West Texas has been the largest beneficiary of this industry shift, but Ohio, Louisiana, Indiana and the Carolinas have also benefited significantly. These markets had almost no data center capacity 10 years ago.

One of the largest infrastructure buildouts in America’s history is bringing investment, jobs, economic diversification and hundreds of millions in property tax revenue to communities. Supporting the next phase of growth will depend on building trust, addressing local concerns and delivering lasting benefits to host communities.

Data center project-finance construction lending has shown strong liquidity, ranging from long-term credit tenants to AI companies and neoclouds. Top-tier credit hyperscalers are still yielding the most efficient pricing (low-200 bps credit spreads) and leverage levels up to 85% loan-to-cost.

Non-credit tenant deals are evaluated on a case-by-case basis. Debt metrics depend on tenant profile, credit support from the off-taker, and the location of the data center project. In general, credit spreads on this profile are about 200-300 bps wider than investment-grade credit construction loans, with leverage in the 70-80% loan-to-cost range.

Additionally, SASB/CMBS and ABS data center volume experienced continued growth in the first half of 2026, combining for a total of $17 billion, a 29% increase from the previous year.