"The suburban trend is taking off for web hosting and co-location space," says Chris Epstein, president of DataCentersNow, which just announced a 110,000-sf O'Hare high-tech warehouse conversion. "Over the next year, suburban markets nationwide, especially those located near airports, will become the primary focus of telecommunications and data center development."

Bob Hebbeler, US director of co-location at Band-X, the online telecom capacity exchange, says that the continuing fashion for city-center co-location development is petering out. "Eventually someone is going to need a big chuck of co-location space, and they are going to have to move out to the suburbs," he says.

The trend in Europe, according to Band-X, has been to locate in outlying industrial areas, resulting in facility sizes four times those of the average US co-location site. Correspondingly, European co-location prices posted on Band-X, at an average of $726 per rack per month, are 20% lower than in the US

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