The eight main North American data center markets are Northern Virginia, Dallas and Fort Worth, Texas; Silicon Valley in central California; Chicago; Phoenix, Arizona; the New York Tri-State Area; Atlanta; and Hillsboro in Oregon.

At the same time new inventory surged, data center vacancy rates plunged to a record low of 2.8%, CBRE said. Prices for the centers grew, with newer centers typically coming with a premium compared to older ones.

“The demand for high-powered computing has exacerbated the pricing disparity between legacy facilities and new data centers, partially because older data centers don’t have the infrastructure to handle the power demands of today’s users,” CBRE’s Data Center Trend Report said.

The demand for newer facilities is likely to make smaller markets, including Northern Indiana, Idaho, Arkansas, and Kansas, more desirable, the report said.