1、Opportunities and challenges for the data center sectorRapid Expansion ResearchUnited States Midyear 2024 05U.S power grid06Data center labor07Market insights01Executive summary02Leasing fundamentals03Capital markets04Artificial intelligenceTable of contents2Rapid ExpansionData center laborU.S.power

2、 gridInvestor appetite and investment sales activity are up from last years levels.Cap rates for core transactions remain in the low to mid 6%range(subject to turbulent debt markets).Construction and build-to-suit projects remain the most active segment with development yields on powered shell deals

3、 in the 7.5%+range and turnkey developments in the 9.5%+range.Executive summaryLeasing fundamentalsThe U.S.colocation data center market has doubled in size in just 4 years.Yet vacancy is at a new record low of 3%amid unsatiable demand.Occupancy has increased at a 30%CAGR since 2020.Preleasing stand

4、s at 84%.Asking rents have increased between 13%and 37%year-over-year depending on the lease size.AI CapEx in recent years totals more than$300 billion with investment levels accelerating in 2024.AI has represented about 20%of new data center demand over the last year,although confidentiality clause

5、s make an exact figure hard to determine.AI holds great potential,but it will take years for the technology to evolve and mature.Hiring and retaining employees remains a significant challenge for data center operators.To reduce attrition,employers need to focus on a positive employee experience that

6、 extends beyond compensation.Growing the labor pool is the simplest way to address the staffing shortage.Pathways include technical development programs and expanding diversity.While some areas are experiencing power exhaustion,other regions continue to have power capacity for data center developmen