Secondary Market: Houston

Colocation Insights

• This market is less active than in prior years, as O&G companies still recover from the pandemic. However, this is changing with large new colocation requirements from Houston’s enterprise community.

Market Trends

• Land is constrained in parts of the market due to flood plain and hazard risk.
• Developers continue identifying sites in Greater Houston’s west and northwest areas, leading to emerging development opportunities.
• Local enterprise users are maintaining interest in the market.

Notable Activity

• CyrusOne will deliver meaningful pre-leased capacity in mid-2023.
• Skybox has 10 MW of powered shell space.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 3: % of Total Secondary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 4: Market Fuel Mix

Source: U.S. EIA.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.