The U.S. data center market ended 2025 with continued inventory growth as colocation inventory rose 8.8% in the fourth quarter and increased 33% year-over-year to 23.7 gigawatts. However, demand still exceeded new supply, Avison Young’s Zachary Cutler reported.
With net absorption setting a new quarterly record of 2.03 GW nationwide, leasing activity remained exceptionally strong in major hubs, with a notable uptick in absorption in emerging markets. The sector is still searching for balance as vacancy remains tight, supported by strong tenant demand and limited availability.
Northern Virginia remains the largest U.S. data center market with 6 GW of capacity as of Q4 2025. Chicago stood as the busiest in terms of adding new capacity, with inventory growing by 326 megawatts in Q4, followed by Atlanta and Dallas-Fort Worth.
Users and operators alike are increasingly focused on securing alternative power sources, with behind-the-meter solutions growing in popularity for both new and existing sites, Cutler wrote.
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