NEW YORK CITY-Friday morning, in the first part of this article, we discussed the threat of terrorism in the data center space. Of course, terrorism isn't the only issue facing data centers.
A recent Wall Street Journal report trumpeted the “lost favor” of data center REITs, citing such issues as declining rents and rising expenses as well as impending competition from the likes of Google and Amazon.
Neither Jeff West, director of Cushman & Wakefield's Data Center Research in the Americas, nor Alter Group senior vice president Kurt Rosene are buying. Citing a projected growth of US spending on data centers at $18 billion by 2020, Rosene believes demand for data centers is secure. “It's being driven by the trend towards backing up data in the cloud, the growth of online shopping, the advent of electronic health records and social media,” he notes.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
