DFW country’s second-largest data center market

​​DALLAS – Dallas-Fort Worth is the second largest data center market in the country, according to a new report from CBRE.

Forty-seven megawatts (MW) of new deliveries last year brought the area’s total inventory to 208 MW.

Northern Virginia leads with 557 MW and Chicago is third with 192 MW.​

North Tex​as absorbed 37.6 MW in 2016, slightly less than the 43 MW recorded the year before. The bulk of the absorption activity occurred in smaller increments. Wholesale transactions averaged slightly more than 1 MW for the year. 

There are currently 41 MW of existing wholesale capacity available in DFW, distributed across 15 data center facilities and ten providers. The vacancy rate for existing data center space in DFW remained relatively static year-over-year at 19.8 percent in fourth quarter 2016, and new supply is maintaining a balanced pace with net absorption. An additional 49.5 MW is currently under construction, with nearly all being delivered on a speculative basis.

Data center rates will continue to stay relatively stable between $120 and $145 per kilowatt per month, with large deals coming in below $120. The rates in DFW are in line with other major markets.​