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New Data Center Rules Alarm Brokers and Developers

WASHINGTON, DC-District of Columbia officials have set new restrictions on data centers, arguing they need to prevent large windowless buildings from turning promising undeveloped land into dead zones.

By Mike Cleary | Updated on October 30, 2000

WASHINGTON, DC-District of Columbia officials have set new restrictions on data centers, alarming brokers that the city is cutting off a new market just as it was budding, and prompting telecommunications to back away from doing such deals in the city. In Washington, brokers say between 1.5 million and 5 million sf of demand have popped up for data centers. The centers are large complexes filled with telecommunications and computer equipment used for switching data transmissions and hosting Web services, and typically have few employees.

Level 3 Communications, a Denver-based Internet services company that plans to build a $250-million data center at 90 K St. NE and has a contract to buy the property, says it was reconsidering the plan. “We’re still working with the city, but we have to keep our options open,” says Kathy Sattem, Level 3 spokeswoman.

The city will require all data centers to undergo a special review process until the city can settle upon permanent rules within four months.

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