Search
 

Data Centers Remain CRE Bright Spot

Data centers are IT assets, but they also represent a sizeable chunk of commercial real estate.

By Noreen Seebacher | Updated on March 06, 2009

Data centers are still a bright spot in otherwise dismal commercial real estate forecasts. “Demand really is booming. The reality is businesses can’t exist anymore without data centers,” says Jill Eckhaus, CEO at AFCOM, an association that represents 4,500 data centers worldwide.

AFCOM is the sponsor of the Data Center World show, which runs March 8 to 12 at the Paris Hotel and Convention Center in Las Vegas. Eckhaus says there are plenty for this year’s participants to discuss, including virtualization, cloud computing, open source software and other new or non-traditional IT technologies; the benefits of green or energy efficient data centers; and creating effective disaster recovery plans.

Data centers, in simplest terms, are large computer rooms that channel all the data going in or out of a business. Although they’re IT assets, they’re also real estate–so the supply of data centers impacts the health of the commercial real estate market. Tier 1 Research, a New York City-based firm that tracks data center supply and demand, has an overall positive outlook for data center space, although there may be a minor dip in 2009 because of the current tight debt market and consequent slowing of new data center construction.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.