2A — March 2026 — M id A tlantic Real Estate Journal
www.marej.com
M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnist .... Cushman & Wakefield; Christopher Moore & Joe Latina, LMT Commercial Realty, LLC/CORFAC International; Dwight Kay, Kay Properties; Ben Roper Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 38, Issue 3 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage
John McWilliams
Americas Data Center Market Shifts to “Managed Growth” D ata center markets in the Americas are en- tering a new phase de- fined by more structured, policy- driven site selection and devel - opment, according to Cushman & Wakefield’s H2 2025 Data Center Update. While demand for capacity remains intense, growth is increasingly shaped by regulatory frameworks, resource availability and infrastructure readiness. “The next chapter of the Americas data center market will be defined less by the scale of demand and more by how ef - fectively markets can stream - line the development of new infrastructure to support it,” said John McWilliams, Head of Data Center Insights, Cush - man & Wakefield. “Govern - ments and utilities are play - ing a growing role in guiding development through power planning, zoning and resource management. Even with these guardrails, demand remains exceptionally strong, reinforc - ing the long-term expansion
REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 www.marej.com
outlook for both established hubs and emerging markets.” Across several jurisdictions, local and regional govern - ments are increasing scrutiny around large-scale data center development. New and evolv - ing policies focused on grid strain, natural resource use and broader infrastructure impacts are affecting approval timelines. In some cases, this has led to project delays, can - celled developments, or the removal of by-right zoning. As a result, market expansion is increasingly shaped by policy frameworks and infrastruc - ture capacity rather than demand alone. Despite these headwinds, the development pipeline con - tinues to expand. By the end of H2 2025, the Americas reached 25.3 gigawatts (GW)
of data center capacity under construction, with the majori - ty located in the United States. At the same time, availabil - ity remains extremely tight. Regional vacancy held steady at 4.2%, even after approxi - mately 3.9 GW of new coloca - tion capacity was delivered in the second half of the year. In the U.S., vacancy remained unchanged at 3.5%. Industry expectations suggest that meaningful easing in avail - ability is unlikely before 2030. Preleasing activity remains strong, underscoring contin - ued competition for capacity. Colocation preleasing across the Americas increased to 78.8%, with U.S. colocation prelease rates even higher at 81.5%, reflecting sustained de - mand from hyperscalers, cloud continued on page 24A
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law
Made with FlippingBook - professional solution for displaying marketing and sales documents online