Record-Breaking Quarter Overshadows Full-Year 2024 Totals
The US data center market has experienced an unprecedented surge in demand, with third-quarter 2025 leasing activity by hyperscalers alone surpassing the total capacity leased throughout the entire previous year. According to TD Cowen’s latest market analysis, Q3 2025 witnessed a staggering 7.4GW of data center leasing—setting a new industry record—while the active US leasing pipeline currently stands at approximately 10.2GW.
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This explosive growth brings the cumulative hyperscale leasing total for 2025 to approximately 11.3GW, marking a substantial 4GW increase compared to 2024’s full-year total of 7GW. The quarter-over-quarter comparison reveals an even more dramatic acceleration, with Q2 2025 having registered just 2GW of leased capacity.
Oracle and OpenAI Drive Unprecedented Market Transformation
Oracle emerged as the dominant force in this leasing frenzy, securing an enormous 5.4GW of capacity across multiple sites during the third quarter. The majority of this capacity is designated to support OpenAI’s rapidly expanding computational requirements, reflecting the intensifying demand for artificial intelligence infrastructure., as covered previously, according to expert analysis
Michael Elias, senior equity research analyst at TD Cowen, characterized this development as historic: “Based on our checks, Q3 2025 would represent the largest inflection in demand we have seen since the inception of the data center industry.”
Broad-Based Demand Growth Across Cloud and AI Giants
While Oracle and OpenAI are driving the majority of current demand, TD Cowen analysts noted significantly increased activity across multiple technology titans. The firm identified five key players contributing to this market transformation:
- Google: Now negotiating gigawatt-scale leases beyond previous commitments
- Meta: Pursuing GW-scale projects extending beyond its Louisiana developments
- Anthropic: Actively developing GW-scale projects independent of its Amazon and Google partnerships
- Microsoft: Expanding capacity to support external GPU customers and growing cloud demand
- Amazon: Scaling up Project Rainier initiatives to meet accelerating requirements
In TD Cowen’s leasing rankings, Google secured the second position with 600MW of capacity leased in Q3, followed closely by Anthropic at 528MW during the same period., according to industry analysis
Market Recovery Exceeds Earlier Projections
This record-breaking quarter follows earlier reports from TD Cowen indicating that data center leasing was returning to scale after a noticeable slowdown in early 2025. During that period, both Amazon and Microsoft had delayed or cancelled certain data center projects, though both companies downplayed concerns about broader market softening.
The current surge validates industry expectations that the temporary slowdown represented strategic recalibration rather than diminished long-term demand. Oracle’s continued expansion efforts—including a massive $300 billion cloud agreement with OpenAI—demonstrate the industry’s confidence in sustained growth trajectory.
Implications for Data Center Infrastructure and Supply Chain
This unprecedented leasing activity signals profound shifts in data center construction, power procurement, and supply chain dynamics. The concentration of massive capacity requirements among hyperscale operators is likely to accelerate trends toward:
- Larger, more power-dense campus developments
- Innovative cooling technologies to support high-density AI workloads
- Strategic positioning near renewable energy sources
- Accelerated adoption of liquid cooling solutions
- Increased competition for suitable development sites and power allocation
The scale of recent commitments suggests that the data center industry is entering a new phase of growth, fundamentally reshaped by the computational demands of artificial intelligence and large-language model training. As hyperscalers continue to secure capacity at unprecedented rates, the entire digital infrastructure ecosystem must adapt to support this accelerated expansion timeline.
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