Americas Data Center H2 2024 Update

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AMERICAS DATA CENTER H2 2024 UPDATE

FEATURED IN THIS UPDATE

• PRIMARY MARKETS: Virginia, Atlanta, Phoenix, Chicago, Dallas, Columbus, Portland and Eastern Oregon, Silicon Valley

• SECONDARY MARKETS: Austin, Toronto, New Jersey and New York, Montreal, São Paulo, Bogotá, Querétaro, Santiago

H2 2024

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

H2 2024 UPDATE

AMERICAS DATA CENTER UPDATE – H2 2024 Artificial Intelligence (AI) continued to be a topic of interest to the data center industry in 2024, and demand for capacity has grown to reflect that interest over the course of the year. The construction pipeline swelled in the second half of the year, with 6.4GW of capacity underway — most of which has already been leased, as large-scale contiguous live capacity remains scarce. Power constraints remain the top challenge for hyperscale and colocation providers, heavily influencing site selection and driving expansion into less established data center markets across the region. Many regional utility providers have gigawatts of unfulfilled requests. Available space in operational data centers is scarce throughout the Americas, with just 607MW available across 569 facilities in North, Central and Latin America. Much of this space is 1MW or less, driving heightened leasing activity in the growing development pipeline. Of the 6.4GW currently under construction, 82% is already committed, with another 17% of planned capacity spoken for. The total planned data center pipeline has surged to 46GW, as demand for cloud computing and AI continues to accelerate. years or more. Where utility providers can't provide power sooner, some operators have collaborated with power companies to deliver substations, transmission lines or tap into microgrid power. Many of these agreements are being signed directly with third-party energy generation developers, accelerating wind, solar, battery storage, natural gas and geothermal projects. In markets like Atlanta and Silicon Valley, new power generation plans to ease constraints are being created or are newly in place. Meanwhile, a growing segment of hyperscale users is exploring the feasibility of implementing small modular reactors (SMRs) to meet power needs, though deployments of this technology are at least five years away. Hyperscale development in the Americas is largely driven by power availability first, with land values and availability second — spurring activity in periphery markets. Occupiers remain focused on availability and, unlike hyperscale users, are often bound to specific markets. Power availability remains the top consideration for data center developers, with operators seeking two- to three-year delivery times but often facing delays of five

North America continued its high-growth trajectory, reaching 20GW of operational capacity, with 1.5GW added in H2 2024, bringing the total capacity added for the year to 3.2GW.

With power and component lead times constraining delivery of new supply, vacancy region wide is currently at 4.9%, driving 82% of deliveries to be preleased and placing upward pressure on lease rates. Interest in large-scale power availabilities, plentiful land and less strict latency requirements for AI has driven hyperscalers and operators to expand into historically peripheral markets like Indianapolis, Kansas City, Reno, Charlotte, Salt Lake City, Minneapolis, Philadelphia, Montgomery, and other outlying areas.

Virginia remains the largest data center market globally, with 5.9GW in operation, 1.8GW under construction, and 15.4 GW planned. Following Virginia in operational capacity are other large markets: Portland and Eastern Oregon (2GW), Columbus (1.8GW), Phoenix (1.5GW), Dallas (1.4GW), and Chicago (1.2GW), all of which have seen continued activity

despite varying power availability limitations.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

UNITED STATES

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

VIRGINIA AMERICAS PRIMARY MARKET

FREDERICK

ASHBURN + LEESBURG

KEY INDICATORS*

MANASSAS

CULPEPER

5,926MW In Operation

924MW 2024 Colo Leasing

FREDERICKSBURG

1,834MW Under Construction

1.5% Colo Vacancy

RICHMOND

Colo

*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

Hyperscale Self-build

MARKET OVERVIEW Virginia continues to see high levels of growth and tight market vacancy with limited availability in operational data centers. To satisfy their demand, occupiers are largely looking for data centers currently under construction or in the planning stages. Operators have remained bullish on the world’s largest data center market and continued their trend of expanding pipelines despite the many challenges surrounding land and power availability in the Virginia market. Currently, 1.8GW of capacity is under construction, with 89% preleased, while 15.4GW is in the planning stage, with 9% preleased. At 1.6%, vacancy is extremely tight, but it only partially explains the tightness of Virginia’s data center marke,t as it largely consists of small amounts of available capacity spread across numerous data centers. For example, the largest available capacity in a single operational data center in the entire state is 10.0MW, located in Richmond. Beyond that, only two operational data centers offer more than 5MW, while nine have between 1MW and 4.9MW available, and 31 have less than 1MW. Many occupiers currently in the market are looking for more contiguous capacity than the market can support, which is why their attention has turned to the development pipeline. Land constraints are another significant challenge, driving up land values and pushing transactions farther from the NoVA core. However, established submarkets, like Ashburn, still have available parcels. Operators seeking to capitalize on the submarket’s extensive data center infrastructure are paying over $4 million per acre. Despite the high cost, data center land transaction activity is still prominent throughout the state, even as power delivery timelines for new data centers extend beyond 2029. However, while there is a high degree of speculation activity for land between Fredericksburg and Richmond, land acquisitions in this area are currently hindered by labor constraints for transmission infrastructure upgrades needed for further data center development. Power constraints continue to be the norm in Virginia, as Dominion Energy, which supplies the area with power, has struggled to meet growing power demand from existing data centers and those currently under construction. However, long-term relief may come as nuclear power gains traction, the viability of small modular reactors becomes clearer, and Dominion strengthens its transmission network while advancing plans to increase generation and improve transmission infrastructure.

ECOSYSTEM DEVELOPMENTS

• Stack Infrastructure recently purchased 504 acres from Peterson Companies at the Stafford Technology Campus, becoming NoVA’s second-largest land deal. Peterson Companies had previously secured rezoning approval to allow the development of a hyperscale data center facility. Stack will build a data center for a hyperscale client on the site. • Yondr officially completed and launched its first data center on the company’s campus in Loudon County. The data center is 48MW in size, and an additional 48MW is currently underway as the second phase of construction began. • TPG Real Estate and Quantum Loophole separated and will no longer develop the Quantum Frederick Project as partners. TPG-owned Catellus Development corporation will be the sole developer of the project going forward. At full buildout, the 2,100-acre campus is planned to have 2GW of capacity. • Dominion Energy and Amazon entered a memorandum of understanding to explore nuclear energy development in Virginia with small modular reactors. This trend of using small modular reactors to power data centers is becoming more common nationwide as power constraints persist in many markets. • QTS made two land acquisitions totaling 928 acres, including a 620-acre site in Sandston and a 308-acre site just outside of Martinsburg, West Virginia. • Stack Infrastructure recently received zoning approval for their data center campus site in Gainesville. Once built, the campus will have 108MW of capacity and span 815 thousand square feet. Stack also recently expanded its presence in Loudon County with a 36-acre land acquisition in Leesburg. • Aligning with the trend of NoVA data centers expanding outward, Rowan Digital secured 151 acres of land in Frederick, Maryland, where it plans to build single-tenant data centers. • Amazon’s proposal for three new data centers was shelved indefinitely by the Prince William Board of County Supervisors, citing noise pollution, the concentration of existing data centers, and redevelopment plans. In other news, a company linked to Amazon, Minnieville Capital Acquisitions LLC , acquired 39 acres in Manassas. • Iron Mountain has been active across Virginia, recently acquiring 40 acres in Manassas for a two-building 150MW project. The company also filed to expand its Manassas campus on Wellington Road with the VA-8 facility and purchased 66 acres in Henrico County’s White Oak Technology Park, which will support more than 200MW of capacity.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

RECENT SALES

NOVA UNITED STATES

H2 24

SITE / PROPERTY

SIZE

SALE DATE SALE PRICE (US$)

BUYER

SELLER

Jefferson Davis Hwy, Stafford

504 acres

Jan-25

$302.3M

Stack Infrastructure

Peterson Companies

Cosner Rd, Fredericksburg

30 acres

Dec-24

$4.8M

PowerHouse

Amazon

Arcola Blvd, Arcola

48 acres

Dec-24

$155M

Amazon

Soave Enterprises

6110 Technology Creek Dr, Sandston 66 acres

Nov-24

$8M

Iron Mountain

Henrico County

CONTACTS Click on each name to send an email.

7816-8122 Bethlehem Rd, Manassas

40 acres

Nov-24

$113.5M

Iron Mountain

PRP Real Estate

21529 Beaumeade Cir, Ashburn**

265,850 sf

Nov-24

$154.1M

CyrusOne

PowerHouse JV Harrison Street

1600 Digital Dr, Chester

104 acres Sep-24

$16.5M

PowerHouse

Cartograf

ANNE ROSENAU Managing Director +1 (703) 847-2765 anne.rosenau@cushwake.com BEN MANN Senior Director +1 (202) 266-1141 ben.mann@cushwake.com

Ruther Glen, VA

534 acres Jul-24

$8.2M

CleanArc Data Centers Mara Loving

15650 Nalles Mill Rd, Culpeper

121 acres

Jul-24

$60.4M

EdgeCore

Arroyo Investors

Ruther Glen, VA

97 acres

Jul-24

$7.3M

CleanArc Data Centers The Virginia Bazaar

SIGNIFICANT CONSTRUCTION & PLANNED UPDATES Updated OPERATOR DATA CENTER SIZE (SF)

POWER (MW)

STAGE - EST. DELIVERY

AWS

Multiple Sites Multiple Sites

22,130,000 (est.)

Undisclosed Undisclosed Undisclosed Undisclosed 72 72 54 127 (est.) 72 1,144 (est.) 233 (est.) 677 (est.) 440 (est.) 828 (est.)

U/C & In Planning U/C & In Planning

Microsoft

1,250,000 (est.)

Compass Datacenters & QTS

PW Digital Gateway

22,000,000

In Planning In Planning

Starwood Capital

Herndon

2,200,000 (est.) 5,839,000 (est.)

CloudHQ

Multiple Sites

U/C & In Planning

Gainesville – Building 1 Gainesville – Building 2 Gainesville – Building 3 Gainesville – Remaining Phases Kincora

483,000 288,000

U/C – 2025 U/C U/C In Planning In Planning

270,000 (est.) 1,260,000 (est.) 500,000

Corscale

Digital Realty

Multiple Sites

13,168,000 (est.)

U/C & In Planning

Culpeper Fredericksburg Multiple Sites Multiple Sites Multiple Sites

2,100,000 5,500,000

In Planning In Planning

Peterson Companies

NTT

2,548,000 (est.) 3,248,000 (est.) 5,979,000 (est.)

U/C & In Planning U/C & In Planning U/C & In Planning

CyrusOne

270 (est.)

PowerHouse Data Centers

1,190 (est.)

Rowan Digital Infrastructure (Quantum Loophole)

Frederick, MD

777,5000 (est.)

(Undisclosed)

In Planning

STACK Infrastructure

Multiple Sites

4,190,000 (est.)

782 (est.)

U/C & In Planning U/C & In Planning

Sabey Data Centers

Ashburn

383,700 (est.)

54 (est.)

The BlackChamber Group

Multiple Sites

3,100,000 (est.)

740 (est.)

In Planning

*Excludes Captive & ICT construction updates.

†Total IT Load

ˆ RFS: Ready for Service

**Powered Shell

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

ATLANTA AMERICAS PRIMARY MARKET

SUWANEE

ALPHARETTA

KEY INDICATORS*

716MW In Operation

895MW 2024 Colo Leasing

METRO ATLANTA

LITHIA SPRINGS

DOUGLASVILLE

1,078MW Under Construction

3.5% Colo Vacancy

EAST POINT

*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

ECOSYSTEM DEVELOPMENTS •

MARKET OVERVIEW All signs in the Atlanta data center market point to sustained heightened demand, as hyperscalers and colocation providers continue to expand their footprints. The largest amount of space currently available in an operational data center is 5MW, while the under-construction pipeline exceeds 1GW, and planned projects total more than 3GW. Without large availabilities, occupiers have turned to upcoming development to satisfy their need for capacity. Colocation data centers currently under construction are 89% preleased, and planned projects are 27% preleased — both figures leading the nation in terms of preleasing percentages for established data center markets. The Atlanta City Council recently passed new legislation limiting new data center development in Atlanta, primarily near the Beltline and within a half a mile of MARTA stations, as they desire residential development and green space in these areas. While this news excludes these sites from consideration for data center development, it is not expected to limit supply. Developers have increasingly looked to suburban Atlanta and beyond for large parcels of land suitable for multi-facility campuses — a trend that has continued in recent years as large infill sites become scarcer and infill land values appreciate. Hyperscalers and colocation providers looking to establish or grow their presence in the Atlanta or across Georgia benefit from several advantages. In line with the state’s business friendly stance, Georgia Power has been approved to bring an additional 1.4GW of power online from Plant Yates, Governor Kemp vetoed a bill that sought to pause data center tax exemptions, and a tax credit for upgrade and expansions to existing data centers remains in place.

Atlas Development LLC proposed a $17 billion, 13-building data center campus called Project Sail, to be built on 832 acres near Newnan, Georgia, adjacent to Welcome Sargent Road and Wagers Mill Road. If approved, the campus would cover 4.9 million sf and generate an expected $1.6 billion in annual tax revenue after its estimated 2036 completion. • Stream Data Centers is planning a major new campus outside Atlanta, which will include nine data center buildings and two substations. The campus will span approximately 1.34 msf and is expected to offer up to 280MW of power within 24 months of lease execution. This development marks Stream's first significant entry into the Atlanta market. • Northern Data Group is developing a state-of-the-art data center in Maysville, Georgia, to meet the growing demand for AI and High-Performance Computing (HPC) solutions. The facility will deliver 120MW initially in the first quarter of 2027, with the potential to expand to 180MW, The center is expected to support the local economy with the creation of up to 100 new jobs. • Edged Energy launched its first North American data center at 1800 Tilford Yard in Atlanta. The campus will feature three data centers, with the first now live, delivering 27MW of capacity and expected to reach 168MW at full build-out. • Data Core Innovations proposed the Rumble Technology Campus, a $1.2 billion data center project in Monroe County, Georgia. Spanning 900 acres between Forsyth and Macon, the campus will feature up to 12 buildings totaling 4.2 msf. The Monroe County board approved rezoning for the northern 525 acres from agriculture to commercial use. Construction is slated to start in late 2025 or early 2026, with the first building expected to launch in 2028.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

RECENT SALES SITE / PROPERTY

ATL UNITED STATES

H2 24

SIZE

SALE DATE

SALE PRICE (US$) BUYER

SELLER

2525 Westside Pky, Alpharetta

240,226 sf

Dec-24

$40M

Lincoln Property Company DXC Technology Company

7800 Strickland St, Douglasville

129 acres

Nov-24

$64.7M

Amazon

TPA Group

2111 Powell Rd, Augusta

212 acres

Oct-24

$31.2M

QTS

Barbara W Sims

Veterans Pky, Fayetteville

204 acres

Sep-24

$39.8M

QTS

Huffman Group

2335 Echo Rd, Lithia Springs

119 acres

Sep-24

$37.1M

Amazon

Taylor & Mathis, Inc.

CONTACTS Click on each name to send an email.

Gullatt Rd, Palmetto

92 acres

Aug-24

$40.7M

T5 Data Centers

Red Rock Developments

2 Gene Allen Rd, Hampton

262 acres

Jul-24

$118M

Equinix

Powergrid Real Estate

151 Etowah Ridge Trl SE, Cartersville 29 acres

Jul-24

$0.3M

Switch

E T Properties Inc.

JOHN McWILLIAMS Head of Data Center Insights, Global Think Tank +1 (303) 312-4233 john.mcwilliams@cushwake.com

4830 Stonewall Tell Rd, College Park 65 acres

Jul-24

$318.5M

EdgeConneX

TA Realty

411 Pegasus Pky, Lagrange

268 acres

Jul-24

$50M

Thor Equities

Jindal Films Americas LLC

SIGNIFICANT CONSTRUCTION & PLANNED UPDATES

OPERATOR

DATA CENTER

SIZE (SF)

POWER (MW)

STAGE - EST. DELIVERY

ATL 4 ATL 5

387,500 968,750

40 120

U/C In Planning

DataBank

Douglasville – Phase 1 Douglasville – Remaining Phases Conyers

1,000,000 250,000 1,000,000 300,000 450,000 450,000 466,000 1,198,000 250,000 490,000 245,000 490,000 2,474,830 4,124,700 385,000

80 120 160 (est.)

U/C – Q4 2025 In Planning In Planning

DC Blox

Digital Realty

10 Forsyth

In Planning U/C In Planning

Tilford Yard – Phase 2 Tilford Yard – Remaining Phases

100 (est.) 41 (est.)

Edged Energy

Flexential

Douglasville – Phase 2

90,000 (est.)

13.5 43 265

U/C

Stanton Springs 2 – Phase 2 Stanton Spring 2 – Remaining Phases

U/C – 2026 In Planning U/C U/C U/C In Planning

Meta

Mesa – Phase 2+

2,150,000 (est.)

300 (est.)

NTT

Phoenix – Remaining Phases PHX2 – Remaining Phases Glendale

1,524,000

204

1,349,000 5,812,000 (est.) 398,300 (est.) 452,000 (est.) 450,000 (est.)

144 (est.) 768 (est.) 108 (est.) 72 (est.) 72 (est.)

QTS

PHX-06 PHX-07 PHX-08

In Planning U/C – 2025 In Planning In Planning In Planning

Aligned Data Centers

Downtown Phoenix Goodyear

833,900 1,784,000

246 176

STACK Infrastructure

PhoenixNAP

Phoenix

500,000

In Planning – Q4 2026

AZ14 & AZ15 AZ2

512,000 (est.) 432,000 (est.) 1,475,000 (est.) 1,162,000 (est.)

112 (est.) 48 (est.) 132 (est.)

U/C & In Planning In Planned

Vantage Data Centers

EdgeCore

Mesa – Phase 2

U/C - 2025 In Planning U/C In Planning

EdgeConnex

Mesa

100 40 160

PHX II PHX III – PHX VI

418,200 2,091,000

Stream Data Centers

Avondale – Phase 1 Avondale – Remaining Phases

260,000 1,042,000 (est.)

7 233 (est.)

U/C – Q4 2025 In Planning

Prime Data Centers

*Excludes Captive & ICT construction updates.

†Total IT Load

ˆ RFS: Ready for Service

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

CHICAGO AMERICAS PRIMARY MARKET

HOFFMAN ESTATES

ELK GROVE VILLAGE

Colo

Hyperscale Self-build

KEY INDICATORS*

NORTHLAKE

DOWNTOWN CHICAGO

1,159MW In Operation

471MW 2024 Colo Leasing

AURORA

169MW Under Construction

5.4% Colo Vacancy

*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

MARKET OVERVIEW Like other established U.S. markets, demand for data center space has been rising in Chicago. Data center leasing activity in 2024 totaled 471MW for the year — a 257% increase over the 132MW leased in 2023, most of which occurred in data centers that are either planned or under construction. While colocation availability in Chicago, at 49MW, is greater than in other established markets, it is still limited, and most available space isn’t suitable for large-scale applications. Competition for land has continued in Chicago, particularly in Elk Grove Village near the O’Hare industrial corridor. This competition for available parcels is pushing buyers toward brownfield development if they wish to stay within the metropolitan area or outside of Chicago for larger greenfield parcels. Limited land availability, power constraints and Illinois’ Biometric Information Privacy Act (BIPA) is prohibiting further growth, which has caused an explosion of growth in northwestern Indiana, extending into southeastern Michigan. To attract Illinois’ demand, Michigan passed a data center sales tax abatement incentive. However, not all demand is leaving the state — land acquisitions in Illinois have been increasing outside the Chicago MSA. Microsoft, CyrusOne, Equinix and Aligned have all made sizeable land acquisitions along the westbound I-80 corridor. Iowa, much like northwestern Indiana and Michigan, has also seen growing interest, particularly in the Quad Cities area. Nevertheless, Chicago has continued to attract hyperscale users and colocation providers, and the planned capacity pipeline continues to grow as these groups seek out and acquire land suitable for data center development. Currently, 2.6GW of data center capacity rests in the planned pipeline and 7% has already been leased by data center users that wish to be in the Chicago market. Much of the planned development is concentrated in Elk Grove Village, which represents more than a 1GW of planned capacity, but planned development is also high in Hoffman Estates and Aurora.

ECOSYSTEM DEVELOPMENTS •

QTS received approval to construct a second data center on their Ashland Ave. campus, which has the potential to scale up to 125MW. The approval required an amendment to QTS’ original development plans. • Midcontinent Independent System Operator (MISO) approved a $21.9 billion long-range transmission plan, with projects expected to come online from 2032 to 2034. The plan includes a 765kV transmission backbone across the Midwest, designed to enhance power flow, improve reliability, and support new data centers and industries. • Power availability and grid infrastructure remain significant obstacles for new data center development. Current power delivery estimates for new data centers under 50MW could reach 18-24 months, while larger projects may not be able to secure the necessary power until 2028 or 2029. • Demolition is underway at the former Sears campus in Hoffman Estates, where Compass Datacenters plans to develop a five-building data center campus. Construction on the 200-acre site is expected to begin in 2025. • Microsoft acquired 506 acres across multiple parcels in Plano, Illinois, west of Chicago. The property was recently annexed into Plano by the city council and rezoned for data center development. • The Chicago City Council approved the Chicago Data Residency Ordinance, which took effect January 1, 2025. The ordinance provides financial incentives for data centers built in the city, but developers must address power delivery solutions, as distribution lines and substations needed for new data centers are lacking.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

RECENT PROPERTY SALES

CHI UNITED STATES

H2 24

SITE / PROPERTY

SIZE

SALE DATE SALE PRICE (US$) BUYER

SELLER

9375 Chestnut Ave, Franklin Park 1 acre

Dec-24

$3.4M

Digital Realty

Ricardo Martinez

E Devon Ave, Elk Grove Village

189,240 sf

Nov-24

$439.7M

HMC Capital

Prologis, Inc.

Eldamain & Faxon Rd, Yorkville

229 acres

Jul-24

$61M

CyrusOne

Green Door Capital LLC

2725 Bilter Rd, Aurora

32 acres

Jul-24

$16.8M

CyrusOne

Edged

CONTACTS Click on each name to send an email.

Busse Rd, Elk Grove Village

14 acres

Jul-24

$36.6M

EdgeConneX

Investcorp

400 S LaSalle St, Chicago**

298,000 sf

Jun-24

$12M

The Prime Group JV Capri Investment Group Cboe

ALEX SMITH Executive Vice Chair +1 (312) 470-3841 alex.smith@cushwake.com

30907 N Alleghany Rd, Grayscale 134 acres

May-24

$29.4M

T5 Data Centers

The Alter Group

SIGNIFICANT CONSTRUCTION & PLANNED UPDATES

STEPHEN SEVENICH Director +1 (312) 424-8905 stephen.sevenich@cushwake.com MICHAEL DUDERSTADT Director +1 (312) 424-8092 michael.duderstadt@cushwake.com

OPERATOR

DATA CENTER

SIZE (SF)

POWER (MW)

STAGE - EST. DELIVERY

1547 Critical Systems

CHIL1

230,000

In Planning

Updated

ORD03 ORD04

400,000 400,000

200 200

In Planning In Planning

Aligned Data Centers

CloudHQ

Arlington Heights Hoffman Estates

1,700,000

252

U/C & In Planning

Compass Datacenters

999,960

111

In Planning In Planning In Planning In Planning

Bensenville Yorkville Aurora

407,630 2,790,000 427,330

144 306 50

CyrusOne

EdgeConneX

CHI03

167,000

In Planning

CH3 CH4

252,000 252,000 565,000 414,000 538,190 1,614,580 330,000 248,000 TBD

36 36

In Planning In Planning In Planning In Planning U/C In Planning U/C - 2026 U/C In Planning In Planning In Planning

NTT

Cermak Franklin Park

54 30 (est.)

Digital Realty

Aurora 1 Aurora 2 & Aurora 3

24 72 36

Edged Energy

Iron Mountain

Des Plaines

Hoffman Estates – Phase 1 Plano

28 TBD

Microsoft

ORD01-02 ORD01-03

354,000 (est.) 354,000 (est.)

54 54

Prime Data Centers

*Excludes Captive & ICT construction updates.

†Total IT Load

ˆ RFS: Ready for Service

**Conversion

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

DALLAS AMERICAS PRIMARY MARKET

PLANO

FORT WORTH

GARLAND

RICHARDSON

KEY INDICATORS*

1,368MW In Operation

454MW 2024 Colo Leasing

500MW Under Construction

6.4% Colo Vacancy

SOUTH DALLAS

Colo

*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

Hyperscale Self-build

MARKET OVERVIEW Leasing activity in Dallas totaled 454MW in 2024, slightly below the 478MW leased in 2023 but still significantly higher than pre-2023 levels. Despite strong leasing activity, colocation availability in Dallas, is still higher than many other established markets — including Virginia — with 72MW of capacity on the market. Vacancy rates reflect this level of availability and currently sit at 6.4% across the metroplex. Of nearly 100 operational data centers in the Dallas market, 38 have some level of availability, though much of it is 1MW or less. Despite the 6.4% vacancy rate, demand in Dallas is showing no sign of letting up, particularly along the I-35 corridor to the south. The under-construction pipeline currently tops 500MW, with 88% preleased, while planned developments now surpass 4GW as well-known colocation firms commit to the market. The composition of the market is changing as well, further positioning Dallas as a major data center market, as wholesale providers represent a significant portion of the pipeline. Though hyperscale self-builds are represented in current operational commissioned capacity figures, they are largely absent from the pipeline, as hyperscalers either lease wholesale space or have otherwise shown more interest along the I-35 corridor between Dallas-Fort Worth and Austin, or farther west toward Abilene. This shift is driven by rising land values in the metroplex and growing concerns over long-term power availability. It is important to note that power availability is less constrained in Dallas than it is in other established markets, and power timelines are often shorter. Also, utility providers in the Dallas area are actively planning to accommodate rising power needs. For example, ERCOT’s regional transmission plan, covering 2026 to 2030, outlines investments in new transmission lines and substations to ease power delivery concerns. Additionally, the U.S. Department of Energy announced $1.5 billion to increase ERCOT’s grid reliability by connecting it to southeastern power markets.

ECOSYSTEM DEVELOPMENTS •

ERCOT's latest Regional Transmission Plan, released in December, includes upgrades to kV lines and new substations slated for 2026 to 2030. A joint study with Oncor, expected in 2025, will evaluate south Dallas, potentially shaping future investments in the area. • The Department of Energy (DOE) will provide $1.5 billion for four electrical transmission projects, including the 320-mile Southern Spirit line connecting ERCOT to southeastern power markets. This project aims to enhance grid reliability in Texas, which relies heavily on the ERCOT grid. • Rpower and Wise Asset are partnering to offer natural gas-powered land solutions for data center developers in Texas. They plan to develop over 3,000 acres in the Dallas-Fort Worth area to meet the growing demand for energy from large users, with availability by 2027. • CyrusOne plans to build a $200-million data center in Fort Worth, which is expected to be completed by the first quarter of 2026. This will be the company’s 15th facility in the state, adding to their extensive portfolio of data centers across the U.S. and globally. The facility, dubbed DFW7, will be located at Asphalt Drive in Fort Worth, Tarrant County, and will span 1.9 msf across a one-story data center and a two-story office component. • DataBank announced the development of a 480MW data center campus on 292 acres in Red Oak, Texas. The campus will feature up to eight two-story data centers, adding to DataBank's significant presence in the Dallas area. Phase 1, expected to be completed by the second quarter of 2026, will include four buildings and a 400MW substation from Oncor that will deliver up to 240MW of critical IT power. Phase 2 will expand this capacity to a total of 480MW across all eight buildings. • Hanwha Energy plans to develop a 200MW AI data center in Texas, estimated to cost $1.45 billion. Construction is set to begin next year, pending necessary power and water infrastructure, with the data center expected to operate hundreds of thousands of servers and be partially powered by Hanwha's 2GW solar plant in Texas.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

RECENT PROPERTY SALES

DFW UNITED STATES

H2 24

SITE / PROPERTY

SIZE

SALE DATE

SALE PRICE (US$)

BUYER

SELLER

1402 E Lookout Dr, Richardson**

129,200 sf

Dec-24

$98M

DigiCo Infrastructure REIT JDM Partners

1201 N Bowser Rd, Richardson

7 acres

Oct-24

$15M

Digital Realty

Halff

CONTACTS

Click on each name to send an email.

SIGNIFICANT CONSTRUCTION & PLANNED UPDATES

BO BOND Executive Managing Director 1 +1 (972) 663-9749 bo.bond@cushwake.com ALI GREENWOOD Executive Director +1 (972) 663-9750 ali.greenwood@cushwake.com

OPERATOR

DATA CENTER

SIZE (SF)

POWER (MW)

STAGE - EST. DELIVERY

Compass Datacenters

Red Oak VI – Red Oak X 1,000,000

180 (est.)

U/C

Aligned Data Centers

DFW03

429,600

72 (est.)

U/C & In Planning – Q1 2026

DataBank

DFW9

425,200

U/C - 2027

Updated

Irving – Remaining Phases FTW DC2

1,500,000 (est.) 471,880

108 (est.) 42

U/C & In Planning U/C

QTS

Equinix

DA12

(Undisclosed)

150 (est.)

In Planning

RICK HUGHES Executive Managing Director +1 (972) 663-9601 rick.hughes@cushwake.com

Digital Realty

Garland – Expansion

410,000

In Planning – Q4 2026

NTT

TX4

139,500(est.)

In Planning - 2026

Irving – Phase 1 Irving – Remaining Phases

315,340 630,670

67 134

In Planning – Q1 2026 In Planning In Planning – Q1 2026 In Planning In Planning U/C - 2027 In Planning – 2026

PowerHouse Data Centers

Fort Worth – Phase 1 Garland – Phase 1 Dallas DFW01C – Phase 1 Lancaster DFW VIII DFW IX – DFW X Lancaster – Phase 1 Red Oak

267,000 534,000 (est) 96,800

48 96 (est) 12

Prime Data Centers

436,000 1,500,000

12 220

STACK Infrastructure

135,290 270,580

30 60

U/C In Planning U/C - 2026 In Planning

Stream Data Centers

270,900 750,000 (est)

48 (est) 125

Skybox, Bandera Ventures

*Excludes Captive & ICT construction updates.

†Total IT Load

ˆ RFS: Ready for Service

**Part of a portfolio transaction

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

PORTLAND + EASTERN OREGON AMERICAS PRIMARY MARKET

HILLSBORO

THE DALLES

PORTLAND CBD

UMATILLA

KEY INDICATORS*

1,970MW In Operation

33MW 2024 Colo Leasing

236MW Under Construction

0.5% Colo Vacancy

PRINEVILLE

Colo

Hyperscale Self-build

*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

ECOSYSTEM DEVELOPMENTS •

MARKET OVERVIEW Demand remains strong in Portland and Eastern Oregon, as indicated by an extremely tight vacancy rate of 0.5%. Though this market is primarily driven by hyperscale self-builds, the colocation market — at 535MW — is expected to double in the coming years. The current pipeline reflects this growth, with 730MW of colocation capacity in the planning stages, led by QTS, Aligned Data Centers and Stack Infrastructure. However, warnings of power constraints are materializing, contributing to the less colocation space currently under construction and the expanding planned colocation development pipeline. In response, PacifiCorp has introduced new power usage penalty rules for large-load customers in the Pacific Northwest, effective February 2025. These rules penalize users who deviate from their initially projected or requested power needs. Despite Oregon’s power challenges, demand drivers such as renewable energy, more affordable land prices, and proximity to west coast markets have continued to attract hyperscale and colocation providers. Power purchase agreements (PPAs) are still being signed, albeit to a lesser extent, despite concerns surrounding power availability and use. Both QTS and Meta recently entered a PPA with Avangrid and Portland General Electric for a 120MW solar energy project in Morrow County. With incentives like renewable energy, strong network connectivity, a resilient tech workforce and lower power cost, the market is primed for continued growth. However, new entrants to the market should be aware of increasing regulatory pushback to new data center developments, further highlighting the importance of sustainable construction and energy usage that benefit local communities. Significant opportunities remain for growth in the data center market across the state.

The Pacific Northwest Utilities Conference Committee ( PNUCC) projects a significant surge in electricity demand in the region, with an annual growth rate of 3.1% over the next decade, driven by the expansion of data centers and high-tech manufacturing. To meet this demand, utility providers plan to add 29GW of new capacity, and demand response programs are expected to double. • Avangrid and Portland General Electric (PGE) signed a PPA with QTS and Meta for a 120MW solar energy project in Morrow County, Oregon. The Tower Solar project will supply renewable energy to a new QTS data center campus supporting Meta's operations. It is expected to be operational by 2026 • PacifiCorp's new power usage penalty rules, approved by the Oregon Public Utility Commission, will take effect in February 2025. These rules penalize large-load customers, such as data centers, for deviating from their projected power needs. PacifiCorp aims to extend these rules to Utah and Washington • Aligned Data Centers topped out its PDX-01 data center in Hillsboro, Oregon. The 72MW facility, featuring a dozen 6MW data halls across 27 acres, will offer 100% renewable energy options and support air, liquid or hybrid cooling solutions. A second planned building, PDX-02, will add an additional 36MW of IT capacity.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

PDX UNITED STATES

H2 24

SIGNIFICANT CONSTRUCTION & PLANNED UPDATES

OPERATOR

DATA CENTER

SIZE (SF)

POWER (MW)

STAGE - EST. DELIVERY

CONTACTS Click on each name to send an email.

AWS

NE Oregon (Multiple Sites)

3,519,000 (est.)

384 (est.)

U/C & In Planning

NTT

Hillsboro Campus – Expansion

193,750 (est.)

U/C & In Planning

JOHN McWILLIAMS Head of Data Center Insights, Global Think Tank +1 (303) 312-4233 john.mcwilliams@cushwake.com

Digital Realty

Portland 3 – Expansion

68,900 (est.)

U/C

Forest Grove – Phase 1 Forest Grove – Phase 2 POR02 – Expansion POR03 Umatilla – Phase 1 Umatilla – Phase 2+ POR01 – Expansion POR03 – Phase 2 POR03 – Phase 3+

600,620 600,620 8,300 229,300

50 50

In Planning In Planning In Planning In Planning In Planning In Planning In Planning U/C In Planning

Crane Data Centers

2 (est.) 19 (est.)

EdgeConneX

Updated 285,800 428,700

60 90

Sabey Data Centers

130,670 51,670 836,300

9 (est.) 12 120

STACK Infrastructure

Flexential

Hillsboro 5

323,000

U/C

1547 Critical Systems

Pittock Block - Expansion

57,000 (est.)

In Planning

Aligned Data Centers

Hillsboro – Phase 2

155,000 (est.)

In Planning

Rowan Digital Infrastructure

Percheron

1,406,250

196

In Planning

*Excludes Captive & ICT construction updates.

†Total IT Load

ˆ RFS: Ready for Service

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

SILICON VALLEY AMERICAS PRIMARY MARKET

SAN FRANCISCO

OAKLAND

KEY INDICATORS*

956MW In Operation

36.5MW 2024 Colo Leasing

FREMONT / NEWARK

39MW Under Construction

5.8% Colo Vacancy

SANTA CLARA

SAN JOSE

*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

Colo

Hyperscale Self-build

MARKET OVERVIEW Silicon Valley, and the broader Bay Area continue to see modest demand for data centers and consistent growth. Power constraints, expensive land and, to a lesser extent, seismic activity risks have kept the under-construction pipeline on a downward trend, with data center completions outpacing projects that have secured power and begun construction. As a result, the planned pipeline has grown to more than 1GW, while 39MW of colocation currently remains under construction. Demand for space in this market still exists, but instead of being able to meet that demand, it has once again radiated outward to nearby markets like Reno, Portland and Eastern Oregon, and Phoenix. However, this hasn’t stopped data center providers from requesting power from Pacific Gas & Electric (PG&E). In PG&E’s 2024 investor update, the company reported 3.5GW of new power requests from data center providers, with delivery dates extending through 2029. Some of these requests are substantial, including one customer seeking 600MW and 800MW. In response, PG&E has reinforced its commitment to the Bay Area’s energy needs by securing a $15 billion loan for infrastructure improvements, increased hydropower generation, expanded transmission capacity, and battery energy storage capacity. Meanwhile, Silicon Valley Power has encouraged new data center proposals to incorporate alternative energy or in-city generation. Will Silicon Valley and the Bay Area see a data center renaissance? It’s possible, but an improved grid and increased power generation won’t alleviate rising land values or provide immediate electricity rate relief. For that reason alone, Washington, Oregon, Nevada and Arizona will continue to offer a significant development and operational cost advantage over Silicon Valley.

ECOSYSTEM DEVELOPMENTS •

PG&E secured a $15 billion loan guarantee from the U.S. Department of Energy’s Loan Programs Office for Project Polaris. This funding will support the expansion of hydropower generation, battery storage and transmission capacity upgrades, helping PG&E meet future energy demands, improve reliability, and reduce costs for its 16 million customers in northern and central California. • Silicon Valley Power is leading efforts to address the increased energy demand from AI adoption by advocating for in-city generation or alternative energy sources in new data center proposals. AWS agreed to use natural gas-powered fuel cells from Bloom Energy at its Santa Clara data center, while Google partnered with Kairos Power to deploy 500MW of small modular reactors (SMRs) by 2035, with the first expected to be operational by 2030. • AWS plans a 15-year, 20MW power purchase agreement with Bloom Energy to support its new Silicon Valley data center, addressing the region's growing energy demands. The deal, expected to cost around $35 million in the first year, highlights AWS's commitment to meeting energy needs despite higher costs and environmental challenges. • GI Partners secured planning permission to build a 72MW data center at 2805 Bowers Ave. in Santa Clara, after the city council's unanimous approval. The project involves demolishing existing office buildings and constructing a new four-story data center, expected to be operational by 2029 or 2030.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

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