CHICAGO-In another report about the future of data centers, Jones Lang LaSalle says these facilities, which support a firm’s network infrastructure, are going to be in even stronger demand in the next year. According to JLL’s mid-2011 US Data Center overview, most of the major cities have a lack of supply to fill upcoming needs in this sector.
Having shown somewhat better corporate bottom lines through the first two quarters, companies wanting storage and speed from these facilities are able to now fulfill requirements, said Bo Bond, co-lead of JLL’s Data Center Solutions team. “Energy will continue to be one of the biggest market drivers,” he said in a statement. “As power consumption in data centers continues to increase, users are increasingly concerned with power redundancy, capacity and cost.”
Some of the most serious geographic areas of data center demand are Silicon Valley, Phoenix, Chicago, the Pacific Northwest, Los Angeles and Dallas/Ft. Worth. Silicon Valley has a vacancy of about 5%, with the market already absorbing about half of the 10 MW that has come online this year. Chicago users also took up 10 MW this year, with new properties coming online (literally), such as Red Sea Group working on a $200 million conversion of 840 S. Canal St. into a data center.
However, new data center property has overshadowed demand in New York City and New Jersey, according to the report. Rental rates softened in the past year in part because of increased supply with providers such as DuPont Fabros Technology and I/O.
Bond said as the appetite for faster, better and more efficient technology continues to grow, so will the need for increased space to house it. Areas such as the Pacific Northwest, North Carolina and parts of the Midwest will become where the next wave of growth will surface, he said. “As speculative development commences, we will begin to see a new crop of winners and losers in the data center arena,” Bond said.
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