The North American data center market posted record numbers across nearly every major metric in 2025. Vacancy in eight primary data center markets fell to an all-time low of 1.4 percent.

Yet the total capacity under construction in these markets, which include Northern Virginia, Atlanta, Dallas Fort-Worth and Chicago, declined for the first time since 2020, according to CBRE’s latest North American Data Center Trend Report. CBRE does not expect the pipeline to reach new highs in 2026, and it’s not for lack of demand.

“There were 5,994.4 MW under construction at the end of 2025, down from 6,350.1 MW in 2024,” the commercial real estate firm reported. “Many planned projects remain delayed due to ongoing permitting, zoning and power procurement hurdles, underscoring the complexities of scaling infrastructure.”

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Grid-power capacity for existing data center projects is largely committed through 2030 in most U.S. markets, according to the CBRE report. New allocation applications have reached into the hundreds of megawatts nationally, though specific figures vary widely and some market participants are questioning how much power these proposed developments will use.

As this publication has reported with more regularity, grid constraints are driving new projects to incorporate onsite power like natural gas generators, wind turbines, hydrogen fuel cells and solar with battery energy storage. Bring-your-own-power arrangements now appear routinely in load studies submitted to utilities, particularly during peak periods, CBRE said.

Hybrid systems combining batteries with gas turbines are displacing diesel backup generators in many large-scale projects, improving efficiency and reliability during grid stress.

“Clear guidelines for permitting behind-the-meter power and access to natural gas are becoming critical in site selection,” the report noted.

Sites offering power access within 18 to 36 months are among the most sought-after assets by data center developers, according to the report. In Northern Virginia and the Northeast, site costs have exceeded $8 million per acre. Developers are also prioritizing locations with 200 MW or more of available capacity.

CBRE added the combination of faster long-distance networks and soaring demand for AI training has opened the door for new markets previously considered “too remote” for large-scale development. Markets such as Nevada, Pennsylvania and Michigan are increasingly attractive due to abundant land, more flexible permitting environments and potentially easier access to power.