Data Center Conversion Market Intelligence

December 17, 2025

As demand for data capacity surges with the growth of cloud computing and AI workloads, traditional vacancy rates in data center markets have compressed to near historic lows (~2.6%), while colocation lease rates continue to climb 12.6% year-over-year, signaling strong fundamentals and investor appetite. Data center conversion projects — repurposing existing buildings into powered compute facilities — present a compelling alternative to ground-up development, often costing 20–40% less while shortening delivery timelines. This Data Center Conversion Market Intelligence Report identifies Lawrence, Kansas and the Kansas City corridor as a high-potential 3MW–10MW conversion opportunity, buoyed by available fiber, power access, cost efficiencies, and proximity to major Midwest demand nodes.

Key Highlights:

  • Data center vacancy: ~2.6% nationally with strong absorption
  • Colocation rents up: +12.6% YOY in core markets
  • Conversion vs. new build: 60–80% of ground-up costs
  • Revenue potential: ~$6M+ annually at 3MW scale; $19M+ at 10MW
  • Strategic location: Lawrence benefits from Kansas City fiber and infrastructure

View the full Data Center Conversion Market Intelligence Report to explore market drivers, pricing benchmarks, financial modeling, power provisioning insights, and why this corridor is attracting conversion demand.
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Here is the link to the article: DATA CENTER CONVERSION MARKET INTELLIGENCE REPORT

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