"According to CBRE's North America Data Center Trends H2 2025 report, this is the first time since 2020 that the primary-market pipeline shrank, ending last year at 5,994.4 MW, down from 6,350.1 MW at the close of 2024. The drop comes despite surging demand for compute power to support AI development."
"Community involvement is a trend to watch - a key factor in permitting and zoning approvals. In markets like Loudoun County, Virginia, where there is a high concentration of server farms, public sentiment and workforce impacts are having repercussions for development timelines."
"Communities fear the effect that facilities might have on energy prices, water supplies, and the environment through noise and pollution from generators. Projects in the US face lengthy delays and even cancellations amid growing grassroots opposition across the states."
Primary US datacenter market pipeline capacity fell to 5,994.4 MW in H2 2025 from 6,350.1 MW in 2024, marking the first decline since 2020. Despite this contraction, vacancy rates hit a record low of 1.4 percent as supply increased 36 percent year-over-year to 9,432 MW. Average rental rates rose 6.5 percent to $195.94 per kW/month, continuing a four-year upward trend. Community opposition increasingly disrupts permitting and zoning approvals, with local concerns about energy prices, water supplies, environmental impacts, noise, and pollution causing project delays and cancellations. Developers face mounting grassroots resistance, particularly in concentrated datacenter regions like Loudoun County, Virginia.
#datacenter-development #community-opposition #real-estate-market-trends #ai-infrastructure #zoning-and-permitting
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