Phoenix Leads U.S. Data Center Markets in Average Asking Rates

In 2023, North American data center pricing surged, particularly in Phoenix where average asking rates reached $170 – $200 for 250-500 kW per month. Leasing activity remained robust, with a 20% increase in renewal rates from H2 2022 to H2 2023, contributing to a low vacancy rate of 3.9%. Over 88% of the 163.5 MW currently under construction in Phoenix has been preleased, highlighting strong demand driven by major hyperscalers. Nationally, average asking prices rose to $163.44 per kW/month, indicating a year-over-year increase of 18.6%, with the U.S. data center market experiencing significant growth and pricing increases. Construction activity also surged, particularly in primary markets like Northern Virginia and Atlanta, reflecting the increasing demand for data center infrastructure driven by AI and digital expansion.

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