Metro Atlanta saw record growth in data center construction in 2025, with nearly 3,968 megawatts of capacity underway, a 15 percent increase from the previous year, according to CBRE. This surge places Atlanta just behind Northern Virginia in terms of U.S. market size for data centers, up from sixth place three years ago.
However, CBRE data indicates that the pace of new construction is beginning to slow. After reaching a peak in late 2024, activity dropped during the first half of 2025 before rebounding later in the year. Despite this recovery, the second half of 2025 was still about four percent lower than the same period in 2024. Nationally, server farm construction also declined slightly—the first annual drop since pandemic-related disruptions in 2020.
Atlanta remains unique among major markets as it has more data center space under construction than is currently operational. Analysts attribute ongoing demand to the region’s adaptable digital infrastructure that serves both large-scale and smaller carrier hubs. Demand continues to be driven by artificial intelligence and cloud computing operators. The vacancy rate for data centers is just two percent—significantly lower than office properties at 25 percent and industrial properties at around ten percent—even after an additional 460 megawatts became available in late 2025.
Georgia Power has reduced its electricity forecast for committed data center customers by 900 megawatts through late-2028 due to sector bottlenecks but will continue with a previously approved plan to expand generation capacity by 10,000 megawatts primarily for data centers.
Mike Lash, senior vice president of CBRE Data Center Solutions, told the outlet that physical constraints in building new facilities are separate from underlying demand: “Physical constraints in the process of building data centers are a separate issue from demand for them.” Pat Lynch, executive managing director at CBRE, added: “Power and supply chain shortages are enforcing a power-first site selection strategy.”
— Eric Weilbacher
