MINNEAPOLIS—According to a new report by JLL, the data center industry in Minneapolis is currently overbuilt, the result of six new providers entering the market with new or redeveloped projects. However, company experts remain optimistic that increasing demand by corporate users will soon fill up existing vacancies and eventually touch off even more new construction.
"The supply outpaced demand and the demand just needs to catch up," Brian Ginkel, managing director and founder of the data center practice group in JLL's Minneapolis office, tells GlobeSt.com. He estimates that the region has about 560,000 square feet of total inventory, and about 337,000 square feet of vacant space.
However, it is probably not very meaningful to evaluate the use of data space with the same tools used to gauge an office or industrial market. "This is a niche real estate market," he points out, dwarfed by the 120 million square feet of office space in the region, and furthermore, data center providers don't suffer much from leaving this relatively small amount of space vacant for a short time.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
