As enterprises continue to invest in critical workloads, they’re discovering that capacity really does vanish while they deliberate. A record-low vacancy rate of 1.9 percent in primary markets last year, according to CBRE, has left many searching for space to power their workloads.

• 80 percent of new construction is already claimed before the first server comes online.
• Demand continues to outstrip supply, with a 70 percent surge in building activity in 2024.
• Even if every currently planned project is completed on schedule, the US could face a data center supply shortfall exceeding 15GW by the start of the next decade.

Major hyperscalers and technology companies are now securing capacity two or more years in advance, directly reducing availability for enterprises that lean on traditional procurement cycles.

“By securing capacity so far in advance, hyperscalers and AI companies are fundamentally changing how space is allocated and priced. You’ll increasingly face limited options if you’re still operating on traditional purchasing timelines.” — Industry expert

Understanding these new parameters — matching internal planning with market realities, identifying providers with available space and guaranteed power access, and acting decisively — will help you position yourself for success.

Why the Timing of Data Center Procurement Matters

Five years ago, the lack of encumbered capacity provided a malleable marketplace for sellers and buyers. That market dynamic has shifted significantly, and it’s not temporary.

1. Securing capacity so far in advance is now the norm for hyperscalers and AI companies.
2. Understanding the market realities and aligning your planning processes accordingly is crucial.
3. By doing so, you’ll be able to secure the capacity you need today.

The data center’s terms have changed, and you must adapt to these new market realities.

How to Get the Capacity You Need Today

The risk of being left on the sidelines is simply the reality of a supply-constrained market where traditional approaches no longer yield results.

• Successful enterprises begin planning up to 24 months before needed delivery dates.
• Providers are already inking agreements for 2027 before 2026 forecasts are developed.
• Aligning your planning horizon with the hyperscalers and the overall market cadence helps ensure your organization doesn’t miss critical opportunities.

Start with a deep dive into your target markets. Study recent transaction rates to understand true market pricing and thoroughly map out alternatives and their delivery timelines.

Don’t be afraid to challenge traditional geographic assumptions.

Consider the parallels to purchasing a home in a competitive market: You wouldn’t start looking for somewhere to live without understanding what’s available and having financing in place.