🔋 AI & Tech Boom fuel explosive Data Center growth in Hillsboro Oregon & Beyond

[AJ Wong]

Hillsboro, Oregon is a stopping point for many Submarine Cables of Fiber Optic bundles that come from around the world on the ocean floor. From here, and with the help of the massive Data Center build-up, Hillsboro, Oregon, is now the gateway to the future. Map courtesy of https://www.submarinecablemap.com/landing-point/hillsboro-or...

According to the Hillsboro Herald:

Hillsboro’s Data Center Market Booms in 2023

Hillsboro’s data center market experienced explosive growth in 2023, solidifying its position as a major player in the U.S. Here are some key highlights:

• Massive Construction Boom: With a staggering 280.8 megawatts (MW) under construction by year-end, Hillsboro’s data center inventory is poised to more than double, according to a report just issued by CBRE.
• Rising Prices and Low Vacancy: Average asking prices climbed to $147.5 per kW/month, reflecting increased demand. Additionally, absorption reached a four-year high in the latter half of 2023 (93.3 MW), pushing vacancy rates down to a four-year low of just 2.5%.
• Market Share and Preleasing: Hillsboro’s data center stock now represents 5.1% of the total primary market inventory. Notably, nearly all (93.4%) of the space under construction has already been preleased, highlighting strong tenant interest.
• Rapid Growth: Hillsboro’s inventory has skyrocketed 334% since 2020, reaching 262.4 MW by year-end. This surge is attributed to the ongoing construction boom, exemplified by Aligned Data Centers’ groundbreaking on a 72 MW project.

Despite power supply limitations, Hillsboro’s data center market thrived in 2023, attracting significant investment and becoming a highly sought-after location.

Top US Data Centers Areas: 

Northern Virginia - 48.3%

Dallas-Ft. Worth - 10.9%

Chicago - 10.8%

Silicon Valley - 8.3%

Phoenix - 7.0%

Atlanta - 6.1%

Hillsboro - 5.1%

New York / Tri-State - 3.7%