Data center demand is likely to be robust through at least 2028, according to JLL’s North America Data Center Report Midyear 2026.
 
Vacancy in the data center space is holding steady at 1% for the third consecutive year despite unprecedented construction, the report says. The miniscule vacancy rate is due to structural demand driven by growing reliance on digital services and AI adoption.
 
“Most tenants securing space today are contracting for 2028 deliveries, underscoring the depth and durability of forward demand,” the report says. “Concerns about a potential bubble should be viewed in the context of 99% occupancy, particularly when the largest data center tenants rank among the world’s most profitable and highest-rated companies.”
 
More than 66 GW of data center capacity is under construction in North America, which represents an electricity requirement greater than Germany, a country with about 84 million people and a $4.7 trillion economy.
 
Today, 77% of this capacity is being built in frontier markets. West Texas has been the largest beneficiary of this industry shift, but Ohio, Louisiana, Indiana, and the Carolinas have also seen impressive growth. These markets had little data center capacity 10 years ago.