The seven primary US data center markets saw 303 MW of net absorption in 2018, up more than 16 percent from 2017's then-record total. That absorption nearly eclipsed the 322 MW of capacity added last year. Northern Virginia, the largest data center market in the world, accounted for 58 percent of net absorption in the primary markets.

“We are closely watching supply and demand trends across the US data center market in 2019 and beyond, particularly as data consumption—driven by the adoption of big-data analytics, 5G, gaming, streaming services, edge computing and the internet of things—continues to drive growth,” says Pat Lynch, senior managing director, Data Center Solutions, CBRE. “Meanwhile, we've seen robust construction activity as operators try to position themselves to rapidly deliver facilities within users' often-tight schedules.”

North American data center investment volume reached $12 billion in 2018, inclusive of single-asset, portfolio and entity-level transactions. While investment was down from 2017's record-setting $20 billion, this was largely due to limited North American entity-level investment opportunities compared to 2017.

“The data center market will continue to evolve and adapt to the demands of today and tomorrow,” Lynch says. “We expect to see a continued influx of capital into the sector from new investors and infrastructure funds seeking to diversify their portfolios, as well as increased investment and expansion in global regions previously untapped by providers and cloud users.”