Key takeaways
- The most quoted benchmark is CBRE's average asking rent for a 250 to 500 kW requirement in primary North American markets: $204.69 per kW per month in the first half of 2026, up 4.3% in six months.
- Bigger blocks still price lower per kW, at $175.00 for 3 to 10 MW and $165.31 for 10 MW and up. But large blocks are rising fastest, because they are the scarcest.
- On CBRE's series, the 250 to 500 kW average is up about 69% since 2020. JLL expects roughly 9% a year to continue through 2030.
- Power is billed on top of rent in most wholesale leases, and minimum power commitments of 60 to 85% are becoming common. Model both before comparing rents.
How wholesale rent is quoted
Wholesale rent is a monthly charge per kilowatt of contracted critical IT capacity, written as dollars per kW per month. A 2 MW lease at $150 per kW per month is $300,000 a month in rent, whether or not you draw the full 2 MW. Electricity is usually billed on top, metered and passed through. See how power is billed.
Three kinds of number get called "the rate," and they are not interchangeable:
- Asking rent is what operators quote before negotiation. Published market benchmarks are almost always asking rents for a reference size.
- Contract rent is what a tenant signs. It depends on size, term, credit, timing and everything else in the lease.
- Effective rent is contract rent adjusted for free rent, ramp, allowances and escalators across the term. It is the only fair way to compare two deals.
Powered shell and build-to-suit rents are often quoted differently: per square foot per year on a triple net basis, or as a return on the project's cost. They are not comparable with turnkey rent per kW without adjusting for the fit-out the tenant pays for. See powered shell and build-to-suit, and our guide to what it costs to build a data center.
National benchmarks
CBRE's North America Data Center Trends H1 2026, published August 27, 2026, is the most detailed public rent series. It reports average asking rents for wholesale colocation of 250 kW and up, at N+1 or Tier III-equivalent redundancy, across eight primary markets: Northern Virginia, Atlanta, Dallas-Fort Worth, Phoenix, Chicago, Silicon Valley, Hillsboro and the New York Tri-State.
| Requirement size | 2023 | 2024 | 2025 | H1 2026 | Change in H1 |
|---|---|---|---|---|---|
| 250 to 500 kW | $163.44 | $184.06 | $196.25 | $204.69 | +4.3% |
| 500 kW to 3 MW | $140.00 | $157.50 | $170.31 | $183.75 | +7.9% |
| 3 to 10 MW | $127.81 | $144.69 | $161.56 | $175.00 | +8.3% |
| 10 MW and up | $117.19 | $133.75 | $155.00 | $165.31 | +6.7% |
Three things stand out. Rent for the smallest wholesale band has risen from $120.79 in 2020 to $204.69, about 69% by our arithmetic from CBRE's series, which matches JLL's estimate of nearly 70% since 2020 (JLL, August 2026). The discount for size still exists, with 10 MW-plus averaging about 19% below the 250 to 500 kW band. And the 3 to 10 MW band grew fastest in the first half of 2026, because contiguous multi-megawatt blocks are what the market is shortest of.
What operators report signing
Asking rents are the start of a negotiation. Public operators disclose what they actually signed, on an accounting basis that spreads escalators across the term, so the figures run lower for long leases:
- Digital Realty, second quarter of 2026: new leases over 1 MW in the Americas at $156 per kW per month, and under 1 MW at $293 (Digital Realty, July 2026). For the first half, its new leases over 1 MW averaged $175 with a 12.2-year average term (10-Q).
- Iron Mountain, second quarter of 2026: 13,127 kW of new and expansion leases at $205 per kW per month (Iron Mountain).
Lease structure moves the number too. In the CRE Finance Council's review of 2025 leases, triple net hyperscale leases ran $100 to $150 per kW per month and modified gross wholesale leases $150 to $250, because a triple net tenant pays operating costs on top (CREFC, January 2026).
Where rents are heading
CBRE expects the 250 to 500 kW average to exceed $215 per kW per month for 2026 (CBRE Midyear Review, August 2026). The supply picture explains why: vacancy across the eight primary markets was 1.4%, 80.4% of the 7,481 MW under construction was preleased, and less than 1,500 MW of future capacity remained unclaimed, about six months of demand (CBRE, H1 2026).
Rates by market
CBRE publishes an asking-rent band for each primary market, and for most of them a band for each requirement size. Bands are ranges of asking rents, not averages, and a real quote can land outside them.
| Market | 250 to 500 kW | 500 kW to 3 MW | 3 to 10 MW | 10 MW and up | Vacancy | Power rate per kWh |
|---|---|---|---|---|---|---|
| Northern Virginia | $190 to $235 | $175 to $200 | $170 to $190 | $160 to $185 | 0.2% | $0.07 to $0.10 |
| Atlanta | $185 to $200 | $175 to $185 | $150 to $175 | $150 to $165 | 1.6% | $0.075 to $0.11 |
| Dallas-Fort Worth | $160 to $185 | Not published | Not published | Not published | 2.8% | $0.07 to $0.085 |
| Phoenix | $175 to $215 | $160 to $190 | $135 to $175 | $130 to $160 | 1.1% | $0.06 to $0.07 |
| Chicago | $195 to $225 | $185 to $195 | $175 to $185 | $165 to $175 | 2.2% | $0.0775 to $0.085 |
| Silicon Valley | $200 to $275 | $185 to $240 | $185 to $240 | $175 to $210 | 4.2% | $0.16 to $0.271 |
| Hillsboro, Oregon | $185 to $225 | Not published | Not published | Not published | 0.21% | $0.10 to $0.12 |
What the numbers do not show
- Northern Virginia: CBRE reports all 2026 deliveries committed and preleasing running into 2027 and later. Contiguous blocks of 5 to 10 MW are hard to secure.
- Chicago: no contiguous block of 5 MW or more is expected to be available this year, and large contiguous projects deliver in late 2027 at the earliest.
- Hillsboro: no facility had 5 MW or more contiguous available.
- Dallas-Fort Worth: 95% of the capacity under construction was preleased, and CBRE counts 3.7 GW of greenfield development planned but not started.
- Atlanta: overtook Northern Virginia as the largest construction market for the first time, with 2,882 MW under way.
Secondary markets
CBRE also publishes a single band for requirements of 250 kW and up in secondary markets. Several sit well below the primary markets, which is one reason searches with flexible geography widen quickly.
| Market | Asking rent, 250 kW and up | Vacancy | Under construction |
|---|---|---|---|
| Austin and San Antonio | $160 to $185 | 1.4% | 550.2 MW |
| Central Washington | $155 to $175 | 2.9% | 68.1 MW |
| Houston | $165 to $195 | 5.0% | 28.5 MW |
| Southern California | $175 to $250 | 12.6% | 34.4 MW |
| Seattle | $155 to $175 | 5.4% | 9.5 MW |
| Minneapolis | $165 to $175 | 16.8% | 36.5 MW |
CBRE does not cover Columbus, Reno, Salt Lake City or West Texas. Cushman & Wakefield does, on a broader definition that includes hyperscale self-builds. It put colocation vacancy at 2.2% in Columbus, 1.9% in Reno, 0.6% in Salt Lake City and 0.0% in West Texas in the first half of 2026 (Cushman & Wakefield, Americas Data Center Update H1 2026).
For market-by-market guides to smaller requirements, see our sister site Colocation Scout.
What moves the price
| Factor | Effect on rent |
|---|---|
| Size of the requirement | Larger blocks have usually priced lower per kW. In supply-constrained markets that discount has narrowed, because large contiguous blocks are now the scarce product. |
| Term | Longer terms buy lower rent. They also lock in escalators and renewal terms, so price those too. |
| Timing and availability | Energized capacity available now commands a premium over a future phase. The discount on future capacity is only real if the delivery date is enforceable. |
| Market scarcity | Low vacancy and long utility queues push rents up. Secondary markets with power can price below primary markets with none. |
| Density and cooling | Liquid cooling and high-density power distribution add cost to build. How that reaches rent varies by operator and by who buys the cooling equipment. |
| Redundancy | Reduced redundancy, common for AI training halls, costs less to build and should cost less to lease. |
| Tenant credit | Stronger credit lowers the operator's risk. Weaker credit usually shows up as security deposits or letters of credit before it shows up in rent. |
| Ramp and flexibility | Slow ramps, expansion rights and termination options are worth money to you and cost the operator. Expect to trade them against rent. |
What the rent leaves out
Planning a facility on your land? Use the landowner operating cost estimator to budget power, ongoing operations and solar options. Published rules, entered estimates and missing costs are identified.
A rent per kW looks complete. It rarely is. Before comparing proposals, add these:
- Electricity, metered and passed through, usually with a PUE factor or adder.
- Cross-connects and carrier or cloud connections, each a monthly charge.
- Remote hands and smart hands beyond any included hours.
- Fit-out inside your space: cages, containment, power distribution, liquid cooling equipment and cabling, if not included.
- Taxes and operating costs under a net lease, including property tax and insurance.
- Security deposit or letter of credit, which ties up capital even when it is not a cost.
- Escalators, which make year ten more expensive than year one.
A full-term cost example
Take a 4 MW requirement at CBRE's first-half 2026 average for 3 to 10 MW, $175 per kW per month, on a ten-year term with a 3% annual escalator. Assume the tenant draws 70% of its capacity on average, is billed power at a PUE of 1.3, and pays $0.08 per kWh.
| Item | Amount |
|---|---|
| Rent in year one | $700,000 a month |
| Power in year one | About $212,600 a month |
| Year-one total | About $10.95 million |
| Rent per kW in year ten | $228.34 |
| Ten-year rent | About $96.3 million |
| Ten-year power, at a flat rate | About $25.5 million |
| Ten-year total | About $121.8 million |
The escalator alone moves the ten-year rent by millions. At 2.5% a year the same lease costs about $94.1 million in rent; at 4% it costs about $100.9 million. That is why we negotiate the escalator as hard as the starting rate. Change any input below to run your own numbers.
Full-term cost estimator
Every input is yours to change. Nothing leaves your browser. The default rent is CBRE's first-half 2026 average asking rent for 3 to 10 MW. The other defaults are assumptions for illustration. None of it is a quote.
The estimate escalates rent once a year and holds power prices flat, so it understates power if utility rates rise. It excludes ramp schedules, cross-connects, remote hands, fit-out, taxes and deposits. For a real number, send us the requirement.
Frequently asked questions
What is the average data center lease rate per kW?
The most widely cited benchmark is the average asking rent for a 250 to 500 kW requirement in primary North American markets, shown in the national benchmarks above with its source. Larger requirements, specific markets and liquid-cooled capacity can price well above or below it.
How much does 1 MW of data center capacity cost per month?
Multiply the rent per kW by 1,000. At $150 per kW per month, 1 MW is $150,000 a month in rent. Power is usually billed on top: the estimator above adds it using your own utility rate, draw and PUE.
Is power included in wholesale data center rent?
Usually not. Most wholesale leases bill electricity separately, metered and multiplied by a PUE factor or adder. Some smaller suites use an all-in rate with a power allowance. Read the definition in each proposal before comparing rents.
Why are wholesale data center rents rising?
Demand from cloud and AI tenants has outrun new supply in most major markets, and new supply is limited by how fast utilities can deliver power. Vacancy near historic lows gives operators pricing power, especially for large blocks available soon.
Are published lease rates what tenants actually pay?
No. Published benchmarks are asking rents for a reference size. Contract rents depend on size, term, credit, timing and the rest of the lease, and effective rent also reflects free rent, ramp and escalators. Use benchmarks to sanity-check proposals, not to predict them.
Sources
- CBRE, North America Data Center Trends H1 2026 and its market chapters, August 27, 2026.
- CBRE, US Real Estate Market Outlook Midyear Review 2026: Data Centers, August 4, 2026.
- JLL, Data center demand exceeds expectations in H1 2026, August 11, 2026.
- Cushman & Wakefield, Americas Data Center Update H1 2026, September 2026.
- Digital Realty, second quarter 2026 results, July 23, 2026, and Form 10-Q for the quarter ended June 30, 2026.
- Iron Mountain, Q2 2026 supplemental reporting.
- CRE Finance Council, Data Center E-Primer, January 2026.
Percent changes since 2020, the size discount and the worked example are our arithmetic from the figures above. Published rents are asking rents for a reference size and redundancy level. They are not offers of space and not what any tenant paid.