Northern Virginia achieved record data center demand for the fourth year in a row, according to . JLL's North American Data Center Report.
NoVA maintains its top position across the U.S. market, with delivery volumes expected to be 1.6 gigawatts (GW) over the next three years based on electricity availability. The region reached a new high last year with net absorption of energized products of 581 megawatts (MW). By comparison, his second-largest market in Northern California had a net absorption of 183 MW.Some of the most desirable areas include Clara, Sacramento, and Sunnyvale.
Rents are also rising, reaching $300 per square foot, more than 20% above the 2022 high.
According to the report, the region's electricity capacity used by data centers more than doubled to 2,767MW between 2018 and 2022. dominion energyA power company in Virginia.
JLL predicts capacity will double again by 2028, with two 500 kilovolt (kV) transmission lines currently under construction to help meet the power demands of the data center market.
According to a JLL report, one of the reasons for this increase in demand for data centers in the US is the dramatic rise of generative artificial intelligence (AI), which includes (300-500 MW).
like a tech giant microsoft, Facebook and Google Everyone is investing more in AI, and with services like OpenAI and ChatGPT attracting hundreds of millions of queries every day, demand is expected to grow even more. AI is already benefiting the office market, In the same way.
But with so few data center leases available in Northern Virginia, it's no wonder companies are snapping up land with plans to build more centers, according to the JLL report.
Such was the case last week when Microsoft acquired 124 acres of land in Gainesville, Virginia, from a prominent data center entrepreneur for $465 million. chuck coon of JK Land Holdings, washington business journal report. (Requests for confirmation from Microsoft and the seller were not immediately returned.)
Kuhn bought the land just four years ago for $46.8 million, according to public records.
Land parcels are located at: 13490 University Boulevard and 5941 Wellington Roadis zoned for data center development because it is located within Prince William County's Data Center Opportunity Zone overlay district, which was formed to encourage data center development.
The newspaper said a rezoning application filed by Kuhn in 2023, which calls for approximately 3.8 million square feet of data center use and greater density allowances for a new electrical substation, is currently pending. W.B.J..
More than 1 MW of available data center space is in record demand, and sites in Prince William and Loudoun counties are trading at record prices, according to a JLL report. In 2023, 1.9 GW of multi-tenant data center inventory and an additional 2 GW of single-tenant inventory were delivered.
Keith Loria can be contacted at: Kloria@commercialobserver.com.