Power, Pricing, and Pipeline: CBRE Report 2025 

Key takeaways from CBRE’s Global Data Centre Trends 2025

“Limited power availability remains the prime inhibitor of global data centre growth in certain core hub markets, leading to opportunities in new hotspots like Richmond (North America), Santiago (Latin America) and Mumbai (Asia-Pacific).” 

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Contents

• Introduction
• Europe
• North America
• APAC
• Latin America

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• Power constraints are driving early aggressive preleasing and delaying construction timelines to 2027+, as cloud and AI companies compete to secure space, resulting in record-high net absorption. 
• Global data centre pricing increased 3.3% year-over-year in Q1 to $217.30 per kW per month, with major markets like Northern Virginia, Chicago, and Amsterdam seeing significant hikes, while smaller markets such as São Paulo and Santiago experienced notable price declines. 
• Demand continues to outpace supply globally, driving the average data centre vacancy rate down 2.1 points to 6.6% in Q1 2025, with Paris seeing the most significant tightening; meanwhile, AI workloads are driving multi-megawatt demand in cities like Tokyo, Sydney, Bogotá, and Mumbai, prompting operators to adopt liquid cooling and invest in specialized AI zones.  

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Europe data centre trends 2025

• Europe’s four largest data centre markets grew inventory by 7.2% year-over-year—slowing from 20% growth the previous year—due to power constraints, with Frankfurt and Paris leading growth while Amsterdam saw no new supply. 

• Vacancy in these top four markets fell by 3.2 points to a record-low 7.4% in Q1, as strong demand outpaced inventory growth. 

• Net absorption grew by 300.5 MW but slowed from the prior year, with Frankfurt and Paris leading demand driven by hyperscale and AI growth. 

• Rental rates increased due to limited supply and higher construction costs, with London’s rates rising notably year-over-year. 

• Availability in the four major markets declined over 25% year-over-year in Q1, with operators expanding new supply outside city centres to address power constraints; Frankfurt had the smallest drop and lowest vacancy rate. 

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North America data centre trends 2025

• North America’s top data centre markets saw a 43% year-over-year inventory surge in Q1, with Atlanta and Phoenix entering the top tier and Northern Virginia retaining its global lead, driven by hyperscale, AI, and enterprise demand. 

• Data centre vacancy stayed low in Q1 despite the inventory surge, with Northern Virginia remaining tight at 0.76%, Atlanta and Phoenix reducing vacancies significantly, and Chicago seeing a slight increase. 

• Net absorption in the top markets doubled year-over-year to 1,668.5 MW, driven by hyperscale expansion and increased power availability, especially in Atlanta and Northern Virginia. 

• Rental rates rose moderately in Q1, led by double-digit growth in Chicago, Northern Virginia, and Atlanta, while Phoenix remained stable as new supply balances demand. 

• Despite strong development pipelines, availability remains very limited, with modest supply increases in Atlanta, Chicago, and Northern Virginia, while Phoenix saw a notable availability decline. 

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APAC data centre trends 2025

• The Asia-Pacific region saw a 4.4% inventory increase over the past year in key markets like Singapore, Hong Kong, Tokyo, and Sydney, while growth accelerates in secondary markets such as Johor and Melbourne due to supply constraints in major cities. 

• Overall vacancy rate held steady at 14% in Q1, with Hong Kong experiencing a high 28% vacancy from new supply and softer demand, while Singapore maintained a low 2% vacancy thanks to strong demand and strict development controls. 

• Leasing demand remained stable, fueled by enterprise colocation, cloud, and AI deployments, with Tokyo leading net absorption at 49.8 MW. 

• Rental pricing remained stable overall, with Singapore maintaining high prices, slight decreases in Tokyo and Sydney, and softened pricing in Hong Kong amid changing demand. 

• Availability rose across most markets in Q1 due to new developments, except Sydney, with growth concentrated in suburban wholesale colocation facilities and secondary markets like Johor and Batam capturing large deployments. 

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Latin America data centre trends 2025

• Inventory in Latin America’s four largest data centre markets grew 13.7% year-over-year in Q1, led by Santiago’s 23% increase, though new greenfield projects slowed due to tariff and energy procurement uncertainties. 

• Vacancy rates in key markets fell sharply in Q1—São Paulo dropping to 9.5%—while Bogotá saw a moderate rise, with limited new supply and uneven power availability highlighting ongoing challenges despite strong demand in strategic locations. 

• Maintained strong net absorption, led by São Paulo and Santiago, although energy restrictions limited growth in Querétaro and Bogotá. 

• Rental rates shifted unevenly: prices fell slightly in Santiago and São Paulo but rose in Querétaro due to power constraints, with São Paulo offering the most competitive options. 

• Availability stayed tight in São Paulo, Querétaro, and Santiago as demand outpaced supply, with Querétaro having less than 1 MW available and Bogotá offering moderate capacity but needing infrastructure upgrades. 

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As the CBRE report highlights, power constraints and shifting market dynamics are reshaping the global data centre landscape. While established hubs face fierce competition and limited availability, emerging markets with reliable power are gaining momentum. For businesses and talent alike, staying ahead means understanding these trends and adapting to a landscape where power—and people—remain the ultimate drivers of growth.

Sources

https://www.cbre.com/insights/reports/global-data-center-trends-2025

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