Austin and San Antonio See Activity Above Historical Averages In Data Center Development

In H1 2018 demand for data centers remain stable in the Austin and San Antonio markets, with much of the market demand coming from large, hyperscale users offering a mixture of internet cloud exchanges, according to CBRE’s latest U.S. Data Center Trends Report.

The markets have seen activity above historical averages in data center development due to large expansions and an increase in smaller wholesale deployments.

Austin and San Antonio have added 9.0 MW of inventory since H1 2017, with 8.0 MW under construction to meet demand. Despite the new supply, the market’s vacancy rate dropped 130 basis points year-over-year to 8.1 percent.  The San Antonio market is largely dependent upon large cloud requirements, which have driven more than 90 percent of the overall leasing activity in the market in recent years. The Austin market is driven by state entities, local businesses and several large technology companies.

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