2022 Global Data Center Market Comparison

It comes as no surprise that Northern Virginia again finished on top of the overall standings for the third consecutive year. It’s the largest data center market in the world, featuring a strong construction pipeline. It offers excellent connectivity, attractive incentives and low-cost power. Vacancy is exceptionally low and demand is high—operators and tenants alike are interested in expansion. Given those conditions, the area will likely become the world’s first two-gigawatt market over the next two years. Right behind Northern Virginia, tying for second, are Silicon Valley and Singapore. Both rank high despite a lack of available developable land, and in Singapore’s case, despite a moratorium on data center construction. Both have strong ecosystems, excellent connectivity, consistent demand, and all major cloud services available and expanding where possible. Chicago and Atlanta are tied for fourth in our 2022 ranking, both offering sizable incentives, low cost of land, plenty of development in the pipeline and lower power costs than most large data center markets. Ranked outside the overall top 10 markets last year, Hong Kong makes a big jump in 2022, coming in just behind our top five markets. It offers a robust development pipeline, excellent networks and all major cloud services are available. Our top ten rounds out with Sydney, which reprised its top 10 showing from 2020, Dallas with its quietly solid absorption and plenty of space available for future

construction, and Portland and Seattle—both sustainably focused cities in the Pacific Northwest of the U.S. Madrid is the largest gainer in the rankings from our 2021 ranking, moving up to 19th from 34th place. It’s a low-risk location with respect to natural disasters, has all major cloud services present, and is quickly tightening as take-up continues faster than development occurs. Northern Virginia again finished on top of the overall standings for the third consecutive year. New Additions Of the new markets we reviewed, Stockholm finished with the highest total score, thanks to lower-cost sustainable power and a strong political environment. Santiago, too, scored well as users both large and small continue to assess the city as a data center hub to serve Chile and greater South America. Although these rankings serve as a general set of parameters for data center site selection, these markets may not be the best locations for every case. Data center owners, operators and users should assess each market based on their specific criteria and objectives. That said, these markets show continued strength even though additional data center development will no doubt lead to changes in our rankings over time.

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