Silicon Valley is a Tier 1 US data center market in CA on the CAISO grid. Colocation inventory is about 489 MW (CBRE Silicon Valley press release, H2 2025 (+4% YoY); JLL H1 2025 ‘Northern California’ 810 MW). Vacancy is 4.7% (CBRE Silicon Valley press release H2 2025 (23.2 MW available)). Typical colocation pricing runs $180-275/kW/month (CBRE H2 2025). GoDataCenters tracks 184 facilities from 26 operators in the metro.
Silicon Valley data center market at a glance
| Metric | Value | Source |
|---|---|---|
| Operational colocation inventory | 489 MW | CBRE Silicon Valley press release, H2 2025 (+4% YoY); JLL H1 2025 ‘Northern California’ 810 MW |
| Under construction | 144 MW | CBRE Silicon Valley press release H2 2025 (144 MW, 84% preleased); JLL H1 2025 Northern California 686 MW |
| Planned pipeline | 3,000 MW | JLL Midyear 2025 (Northern California) (H1 2025) |
| Vacancy | 4.7% | CBRE Silicon Valley press release H2 2025 (23.2 MW available) |
| Net absorption | 29 MW | JLL Midyear 2025 (Northern California H1 2025 absorption 29 MW) |
| Typical pricing (kW/month) | $180-275/kW/month (CBRE H2 2025); $180-220/kW 1-5 MW (JLL H1 2025, Northern California) | |
| Grid operator | CAISO | |
| Power utility | Silicon Valley Power (City of Santa Clara); PG&E elsewhere | |
| Facilities tracked by GoDataCenters | 184 | GoDataCenters facility database |
How available is power for data centers in Silicon Valley?
‘As demand for power accelerates, the large deployments are taking place in states with more abundant energy resources’ – Silicon Valley expanding modestly (CBRE H2 2025). Only California broadly applies its sales tax to data centers (Tax Foundation).
Power is served by Silicon Valley Power (City of Santa Clara); PG&E elsewhere. Grid operator: CAISO.
Who are the major data center operators in Silicon Valley?
Major operators active in the market: Equinix, Digital Realty, CoreSite, Vantage, STACK Infrastructure, NTT, CyrusOne, Prime Data Centers, Colovore.
| Operator | Facilities in metro (GoDataCenters DB) |
|---|---|
| Equinix | 18 |
| Digital Realty | 16 |
| Csquare | 10 |
| CoreSite | 8 |
| Vantage Data Centers | 8 |
| STACK INFRASTRUCTURE | 7 |
| Evocative Data Centers | 6 |
| Prime Data Centers | 6 |
| Prologis | 6 |
| EdgeCore | 4 |
| Lumen | 4 |
| Goodman | 3 |
Facility concentration by city: Santa Clara (97), San Jose (54), Sunnyvale (16), Hayward (7), Fremont (6), Mountain View (4).
What does colocation cost in Silicon Valley?
Typical pricing bands: $180-275/kW/month (CBRE H2 2025); $180-220/kW 1-5 MW (JLL H1 2025, Northern California). Bands are brokerage-reported ranges for the market, not quotes. Actual rates depend on power density, term, ramp and redundancy.
What tax incentives apply to data centers in CA?
| Item | Detail |
|---|---|
| State sales/use tax exemption | no |
| Note | California has no data-center-specific sales tax exemption; ‘Only California broadly applies its sales tax to data centers’ (Tax Foundation 2025). Monterey Park (LA County) passed first voter-approved citywide data center ban June 2, 2026. |
Silicon Valley colocation by capacity band
- 1-5 MW colocation in Silicon Valley
- 5-20 MW colocation in Silicon Valley
- 20 MW+ colocation in Silicon Valley
- Powered shell colocation in Silicon Valley
Frequently asked questions
How much data center capacity is in Silicon Valley?
About 489 MW of operational colocation inventory per CBRE Silicon Valley press release, H2 2025 (+4% YoY); JLL H1 2025 ‘Northern California’ 810 MW. A further 144 MW is under construction.
What is the data center vacancy rate in Silicon Valley?
4.7% per CBRE Silicon Valley press release H2 2025 (23.2 MW available).
What is the typical colocation price per kW in Silicon Valley?
$180-275/kW/month (CBRE H2 2025); $180-220/kW 1-5 MW (JLL H1 2025, Northern California).
Which grid serves Silicon Valley data centers?
CAISO. Utility: Silicon Valley Power (City of Santa Clara); PG&E elsewhere.
Does CA offer a data center sales tax exemption?
no.
Is Silicon Valley a Tier 1, Tier 2 or Tier 3 data center market?
Silicon Valley is classified as a Tier 1 market, using the CBRE, JLL and Cushman & Wakefield market tracking conventions.
Related pages
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Sources
- https://www.cbre.com/press-releases/silicon-valley-data-centers-expands-modestly-as-power-rich-states-capture-mega-campus-growth
- https://realestatedaily-news.com/wp-content/uploads/2025/08/JLL-North-America-Data-Center-Report-Midyear-2025-8.14.25.pdf
- https://www.cbre.com/insights/books/north-america-data-center-trends-h2-2025
- https://taxfoundation.org/research/all/state/data-centers-taxation/
- https://www.constructionowners.com/insights/data-center-tax-incentives-state-by-state-whos-still-giving-whos-taking-back
Data compiled by GoDataCenters. Last updated 2026-09-02. Figures are market-level ranges from cited reports, not quotes.