Primary Market: Northern Virginia

Colocation Insights

• Strong demand and immediate online supply constraints enabled Northern Virginia to set a new record low 0.98% vacancy rate.
• Net Absorption at 436.9 MW set a new record for total absorption in a single year.

Market Trends

• Operators expect Dominion Energy to provide significantly less power for development, but this bottleneck should normalize by 2026.
• Electricity rates in Northern Virginia remain steady, despite headwinds for power availability.
• Available land and land pricing remains top of mind for new development.

Notable Activity

• STACK Data Centers acquired 74 acres in Prince William County, adding to its existing presence. This new parcel will add 100 MW to the now 250 MW campus.
• Iron Mountain filed to expand its Manassas Campus to develop a data center on 24 acres of additional land.
• Microsoft is planning to add two data centers, expanding its existing campus in Leesburg. The data centers will total 475,700 sq. ft.
• Major cloud providers leased most of last year’s new capacity.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H2 2022

Figure 3: % of Total Primary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H2 2022

Figure 4: Market Fuel Mix

Source: Dominion Power.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.