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Data Centers Are Losing Their Niche Status

“The evolution of data centers as a real estate class has created some discipline that has been healthy for the industry,” CBRE's Pat Lynch tells GlobeSt.com.

By Paul Bubny | Updated on January 19, 2018

Photo of Pat Lynch Lynch says that inquiries from would-be investors in the data center have increased significantly in the past year.

DENVER—Data center demand has reached record levels in the past few years, and shows no signs of ebbing in 2018. That’s the case even as nearly 300 megawatts of capacity are scheduled for delivery in the sector’s primary markets—new inventory that will be delivered to markets with vacancies at or below 5%.

These are among the key findings of CBRE researchers in the data center section of the firm’s 2018 US Real Estate Market Outlook. With investor demand hitting new peaks, as well, this formerly niche asset class is drawing mainstream interest. Pat Lynch, senior managing director for CBRE’s Data Center Solutions group, oversees a team that provides colocation, cloud and hybrid IT and acquisition and disposition services to clients. Here, he surveys the current landscape for the sector as well as what’s ahead.

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