Introduction
Colocation capacity in North America has reached an unprecedented low, with a vacancy rate of just 2.3%. This shortfall poses challenges to scaling IT infrastructure, with projections suggesting that an investment of nearly $1 trillion will be necessary to meet demand by 2030.

Key Details

• Who: JLL, a real estate services firm, has published the findings.
• What: The North America Datacenter Report highlights that most new constructions are pre-leased, limiting available capacity.
• When: Data is based on first-half 2025 metrics.
• Where: Focus is on North America, though similar issues are reported in Europe.
• Why: Demand continues to soar due to increased reliance on cloud services and digital transformation, exacerbated by shortages in power supplies and construction delays.
• How: Progress is hampered by extended wait times for grid connections, averaging four years, and stricter requirements for power procurement deposits.

Why It Matters
This situation significantly impacts various IT strategies:

• AI Deployment: A resource shortage could slow down AI model training and implementation as required infrastructure becomes scarce.
• Virtualization: Companies that rely on VMware or other virtualization strategies may find expansion limited by capacity constraints.
• Hybrid/Multi-Cloud Strategies: Organizations may struggle to implement hybrid solutions effectively due to colocation limitations.
• Enterprise Security: Insufficient datacenter capacity could hinder efforts to maintain compliance and security measures.

Takeaway
IT professionals should monitor this rapidly evolving landscape and assess their infrastructure plans accordingly. Given the projected growth of colocation demand, proactive measures, such as engaging in early negotiations for space and evaluating reliable power sources, will be critical for sustaining operations.

For ongoing insights into IT infrastructure trends, visit trendinfra.com.