Search
 

Data Center Construction Soars Nationwide

Although leasing on the part of cloud providers has temporarily slowed, there is a lot of pent-up demand from other Fortune 1000 firms.

By Brian J. Rogal | brianjrogal | Updated on August 10, 2017

new jersey data center (2) NJ1 Data Center in Piscataway, NJ, a 360,000 square foot building near Newark Airport.

CHICAGO—The increasingly common use of smartphones sent demand for new data centers soaring in 2016, and the resulting development boom shows no sign of abating. According to a new mid-year report from Chicago-based JLL, data center construction in North America has so far increased 43% from 2016. Leasing activity slowed down from the breakneck pace seen in the first half of 2016, but experts say all the signs point to the sector getting another boost over the next six months.

“In the first half of 2016, we saw the large cloud providers lease a tremendous amount of space,” Curt Holcomb, a Dallas-based executive vice president with JLL, tells GlobeSt.com. And these firms seem to have taken a breather this year as they concentrate on utilizing the space taken up in 2016.

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.