NJ Data Center Rents Climb More Than 30% in H2 ’23  

The New York Tri-State area saw a record-low data center vacancy rate of 6.5% in H2 2023, down from 9.8% in H1, driven by strong demand, particularly from AI operators, according to CBRE’s report. Rental rates rose to $130-$150 per kW for 3-10 MW requirements per month.  

The report noted New Jersey’s strong demand, with pricing per kW up 20% to 30% or more. Publicly traded operators are seeking higher pricing due to rising capital costs, and power procurement issues are delaying expansion plans by 24 to 36 months. 

AI companies pre-leased over 40 MW in H2 2023, with further expansions underway. Notable activity included QTS’s completion of leasing in Piscataway, NJ, and pre-leasing in East Windsor, NJ. Equinix purchased a building in Secaucus, NJ, and a Databank facility in Orangeburg, NY, was fully pre-leased, with plans for a 30-MW expansion.