- Data collected by Green Street shows that data center supply has been growing at an accelerated rate for over a decade.
- Between 2013 and 2023 annual data center supply growth averaged 24.5%. The next fastest growing sector tracked by Green Street was self storage, which grew at an annual rate of 3.0%. For comparison, multifamily supply grew at an average annual rate of 1.9% over the same period.
- After peaking at a year-over-year supply increase of 55% in 2024, the rate of supply growth slowed in 2025 and is expected to continue moderating through 2030.
- However, because data center capacity has grown so rapidly, even a lower percentage increase now results in larger absolute additions. For example, the 26.7% increase in 2025 added more than twice as much capacity as the 35.6% increase recorded in 2022.
- Despite, the rapid expansion in supply, strong demand has kept pace and resulted in a tight market for data center space. Green Street reports that occupancy rates have actually increased over the years to reach 94.3% at the end of 2025. Much of the new product is coming to market pre-leased.
- Power constraints and rising construction costs are now limiting the pace of supply growth, even as demand remains. There were 241 GW of data center projects in the development pipeline at the end of 2025. That is equivalent to the entire generating capacity of Japan. Additionally, JLL estimated that the cost to construct 1MW of capacity has risen by a compound annual growth rate of 7% over the last five years – reaching $10.7 million in 2025.
- Efficiency improvements are the clearest path toward finding balance between supply and demand for data centers today, given the physical limitations posed by power needs. In the meantime, demand is on track to outstrip supply and push forward further development in the face of rising costs and power constraints.
Data Center Supply Growth
April 9, 2026 2 minutes read
