Seattle

Colocation Insights

• Enterprise clients are driving Seattle colocation demand.
• Pricing continues to rise in tandem with increased leasing activity.

Market Trends

• AI is being offered as a fast, scalable, next-generation cloud service.
• Seattle’s hydropower and tax incentives are attracting new demand.
• Various liquid-cooling systems are being used by certain data center tenants and operators.

Notable Activity

• Sabey is completing a 6-MW expansion of its SDC Building 5, with delivery scheduled for Q1 2026.
• Sabey plans to expand its SDC Building 4 and add a new data center building to its Seattle campus.
• Washington State’s sales and use tax exemption for qualifying data center tenants and operators has greatly increased leasing and sales activity across the Puget Sound region.

Figure 1: Historical Market Information

Figure 2: Historical Supply and Demand

Figure 3: % of Total Secondary Market Inventory

Figure 4: Market Fuel Mix

Figure 5: Average Asking Rates