Data centres have become the fastest-growing asset class in the United States property market, but are increasingly finding themselves at the centre of political controversy. Last year, loans estimated at 121.91 billion dollars were provided to this sector, according to data from S&P Global Ratings. Between the first quarter of 2025 and the first quarter of 2026, the supply of data centres grew by 33 per cent, according to surveys by CBRE. At the same time, vacancy rates in existing operational facilities remain at historic lows.
The tightest market remains Northern Virginia, with a vacancy rate of just 0.3 per cent at the start of the year. Loudoun County there is home to around 253 data centres with a total floor area of 49 million square feet. This means that a quarter of all US data centres are located in this single county. The establishment of this infrastructure is also reflected in the regional economy: with a median household income of 170,000 dollars per year, Loudoun County is considered the wealthiest county in the US.
Resource debate and geographic diversification
Despite the economic momentum, public opposition is growing, particularly regarding resource consumption. Hossein Fateh of CloudHQ, who has been developing data centres since 2000, rejected allegations concerning water consumption. Half of the facilities built by his company have zero net consumption thanks to closed-loop water systems. For a major project in Chicago with a 240-megawatt IT load, the water requirements of the adiabatic cooling system correspond merely to the annual consumption of a single golf course hole. At the same time, developers such as Jeff Thramann of LT350 are working on decentralised concepts that envisage smaller facilities on car park roofs to bring hyperscalers closer to local communities.
Due to space constraints in Virginia, alternative locations are coming into focus, including Querétaro in Mexico. The region, located about three hours by car from Mexico City, now accounts for roughly 72 per cent of the country's operational data centre capacity. John McWilliams of Cushman & Wakefield emphasised that Querétaro is rapidly developing into a central cloud region for Mexico and holds the potential to play a leading role across the entire continent.
Mixed results for major US property companies
Parallel to the momentum in the technology sector, the latest third-quarter figures from established US property companies painted a mixed picture. Vici Properties recorded a 55.1 per cent decline in funds from operations and expected credit losses of 458 million dollars, but exceeded revenue expectations. Blackstone Mortgage Trust posted a net loss of 327.6 million dollars, more than four times the deficit from the second quarter. BXMT President Austin Peña pointed to a comprehensively repositioned portfolio and diversified investment channels to navigate the persistently high interest rate environment.
Alexandria Real Estate Equities reported a net loss of 638.5 million dollars for the past quarter. The company is currently in the process of selling the 421 Park Drive property in Boston for a price of around 136 million dollars. In addition, KKR announced the acquisition of a 49 per cent stake in the Campus Point by Alexandria mega-campus in San Diego. At BXP, meanwhile, the reorganisation of space in the General Motors Building in Manhattan could open up opportunities, as around 400,000 square feet of office space on Fifth Avenue is due to be re-let.
