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A new report ranking the biggest data center sales places New Jersey among the top markets nationwide.
According to CommercialCafe, the Garden State’s inventory of more than 10 million square feet of data center space across 55 properties placed the state at No. 4 in the U.S. at the end of 2024.
How long New Jersey will hold that spot will be seen, as data center development picks up across the county. CommercialCafe, a commercial real estate internet listing service and part of Yardi‘s network of platforms, identified Northern Virginia (Washington, D.C.), with nearly 33 million square feet of inventory, as the No. 1 market to close out 2024.
Dallas followed at No. 2 with more than 15 million square feet and Chicago placed third with 13.9 million square feet.
In the last year, increasing demand for cloud services, AI infrastructure and hyperscale computing has sparked a major data center construction boom in the U.S., CommercialCafe said.
The blog looked at the 94 largest U.S. data center markets, taking into consideration four main areas: Active construction pipelines; inventory growth (2015-2024); investments trends over the decade; and the largest deals of the last 10 years.
New Jersey was home to two of the biggest data center sales by price, according to the data:
- No. 2: 3003 Woodbridge Ave.
- Buyer – Iron Mountain
- Year – 2016
- Sale price – $310.4 million
- No. 6: 300 John F. Kennedy Blvd. E.
- Buyer – Brookfield Properties
- Year – 2024
- Sale price – $217 million
Locally, less on the way
CommercialCafe said the local area’s tech, finance and connectivity strengths have helped serve up strong sales numbers here.
However, when it comes to projects coming down the pike, land-constrained New Jersey was noticeably absent from the top 20 U.S. markets. “Namely, New Jersey leans on high-value acquisitions over new builds,” according to the report.
National inventory leader Northern Virginia (Washington, D.C.) also placed first for data center space under construction: nearly 6 million square feet, signifying more than 18% growth over its current stock, according to CommercialCafe.
New Jersey leans on high-value acquisitions over new builds.
The study highlights Atlanta and Phoenix as emergent markets. The regions placed second and third, respectively, for square feet under construction (5.2 million square feet and 4.9 million square feet, respectively).“Here, developers are cashing in on tax breaks and cheaper energy compared to coastal regions,” according to the report.
The Midwest is also gaining. From 2015 to 2024, CommercialCafe said Columbus, Ohio, added 6.1 million square feet, while Des Moines, Iowa, added 5.6 million. In this area, the report highlighted the reliability of power grids as well as affordable land prices as driving development — sensitive subjects in New Jersey.
NJ data centers power up
In March, New Jersey was high-ranking in another national look at the data center sector.
CBRE ranked the Garden State ninth among major markets in new capacity under construction. Marking a 13% increase, the pipeline includes 142.1 megawatts, according to theNorth American Data Center Trend Report.
Among notable activity in the market, CBRE highlighted CoreWeave’s commitment at the emerging NEST campus in Kenilworth. The company, which recently went public, plans to invest $1.2 billion into the data center at Onyx Equities LLC and Machine Investment Group’s 100-acre Northeast Science and Technology Center.
“High interest rates have not slowed down leasing activity, and pricing is at all-time high for colocation facilities due to little available supply,” commented CBRE Senior Vice President Bill Hassan. “AI-related occupiers are eager to absorb space in 5-to-10-MW increments before 12 months of availability, and demand for legacy space continues to drive record-low vacancy.”
On the development side, CBRE noted “confirmed power availability” takes precedence over other site-selection criteria.
Among local projects delivering soon, CBRE noted CoreSite in Secaucus. The firm also highlighted QTS in Hightstown, where the global digital infrastructure company is building out 20 MW for an AI-related occupier.
