Not so long ago, artificial intelligence was a word and a concept not common in ordinary conversation. Today, AI is part of virtually every mention of technology, and its rapid adoption has driven demand for data centers to house the computing power needed for AI applications through the roof.

Space is in such short supply that users should have it lined up long before they plan to go live, even as prices rise, according to JLL's North America Data Center Report for H1 2023. "Most of the supply expected to be delivered in the latter half of 2023 and 2024 has been preleased or is under exclusivity, resulting in limited options for users," the report stated.

The largest cloud service providers are expanding quickly to meet their AI needs, with a "significant surge" in leasing in Q2 2023. In the process, they are squeezing out smaller users that need less space and power, while creating demand for data centers in smaller cities.