Atlanta’s data center market emerged as the national leader in net absorption (the amount of space leased compared to the amount vacated over a given period), achieving 705.8 megawatts (MW) of positive net absorption in 2024, according to CBRE’s latest North American Data Center Trend Report. 

The market’s 2024 net absorption was nearly 39 times higher than year-end 2023 (18 MW). Notably, this marks the first time any primary market has surpassed Northern Virginia in net absorption since CBRE began tracking the sector. 

Atlanta had its highest volume of colocation leasing activity ever in 2024. The surge highlights the growing demand for data center space in the surrounding region, fueled by both colocation and GPU-as-a-Service (GPUaaS) tenants. GPUaaS is a cloud-based service that allows users to access high-performance graphics processing units, or GPUs, on demand. 

Recent notable activity includes AWS’ plans to invest $11 billion in new data center development, GPUaaS companies’ signed deals ranging from 6 to 12 MW with multi-tenant data center providers, and Lincoln Property Co.’s acquisition of a DXC data center with plans to redevelop it into a 30-MW colocation facility. 

Despite a 222% increase in data center inventory last year for a total of 1,000.4 MW, Atlanta ramped up data center space under construction to accommodate demand. In H2 2024, the market saw 2,159.3 MW under construction. This represents a 195% annual increase in under construction totals, the most of all eight primary North American data center markets* in the report. 

“Atlanta has emerged as a prime destination for new data center construction thanks to its business-friendly environment and strong, reliable power infrastructure,” said Mike Lash, Senior Vice President of data center solutions at CBRE. “With demand surging and new construction facing longer lead times, the industry is strategically focused on densifying existing data centers to rapidly expand capacity. This approach allows providers to meet market needs efficiently while maintaining Atlanta’s momentum as a top-tier data center hub.” 

National Trends

The North American data center sector doubled the amount of supply under construction in 2024 from the previous year to a record 6,350.1 megawatts (MW)—a 12-fold increase from the 456.8 MW under construction in 2020. 

This surge highlights the growing need for data centers that can meet the power demands of AI companies.

Last year, the eight primary North American data center markets saw a significant uptick in completed construction, with total supply reaching 6,922.6 MW—a 34% year-over-year increase. This growth outpaced the 26% increase in new supply in 2023. Yet the sector still is struggling to meet current demand due to extended construction timelines driven by power constraints and supply chain delays.  

In 2024, the average vacancy rate in primary markets reached a record low of 1.9%. Vacancy rates decreased across all primary markets for the first time since CBRE started tracking the data center sector in 2013. In tandem, the national average lease rate rose to a record $184.06 per kW/month, up 12.6% from a year ago, marking the third straight year of double-digit percentage increases.  

The power demand of artificial intelligence is a key influence on site selection as occupiers prioritize sites with power available in the next 18 to 24 months, a short timeframe in the current market. Sites with access to power are attracting attention from developers and investors regardless of location, which is a shift from previous years. Markets in North Carolina, Northern Louisiana and Indiana are positioned for significant growth due to greater power accessibility, available land and tax incentives.

Top Data Center Markets 

Primary market net absorption jumped from 329.6 MW in 2020 to 1,809.5 MW in 2024—a 450% increase in just four years. Despite being outpaced by Atlanta in overall net absorption, Northern Virginia remained the largest data center market with 2,930.1 MW of total inventory, 17% larger than a year prior due to robust construction. Northern Virginia recorded 451.7 MW of total absorption in 2024.

To read the full report, click here.