Vacancy rates at data centers across the country remained at 1% for the second consecutive year, with 92% of the data center capacity that is under construction being pre-committed, according to brokerage firm JLL’s North American Data Center Report for 2025.

The report, released earlier this month, states that Texas could overtake Virginia as the largest global center market by 2030.

The low vacancy represents “sustained structural demand rather than cyclical imbalance,” the report read.

According to the report, the capacity that is available is limited to small, fragmented blocks that allow little flexibility for “large-scale” deployments. Tenants securing space will take delivery in 2027 or 2028.

“At the same time, constrained availability is limiting the risk of overbuilding,” the report said. “Bubble concerns are difficult to reconcile with 99% sector occupancy, particularly given that the largest data center tenants rank among the most profitable and highest-rated companies globally. While pockets of risk remain − primarily tied to a narrow subset of novel business models − they represent less than 10% of future tenancy based on current developments.”

The report showed that the Des Moines market ended 2025 with approximately 1.1 gigawatts of existing data center capacity.

“Des Moines is emerging as a frontier data center market, supported by long‑term investment interest and a development‑friendly environment that continues to attract large‑scale users,” Tanner Hedstrom, vice president of JLL, said in an email.

Other data provided by JLL shows:

• Approximately 1,270 acres of land has been purchased for future data center development in the Des Moines metro since 2024, a trend that is continuing with additional sites in the metro moving through early‑stage evaluation. Beyond Des Moines, Iowa has also seen increased data center projects, reflecting broader interest in the state.
• Lead times in Iowa align with national trends, with many new projects effectively on four‑plus‑year timelines.
• Power availability is a key gating factor for new data center development in Iowa. New projects typically will need to complete a load study for their project, and larger power requirements will require a new substation, which may extend delivery timelines.
• Current and planned data center construction activity in Iowa is largely driven by larger users and developers, including hyperscalers and major colocation platforms.