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2016 Sees Surge In Demand For Data Centers

January 24, 2017

2016 Sees Surge In Demand For Data Centers

CHICAGO—And 2017 should see even more growth, as both the public and corporations flock to the cloud.

CHICAGO—The demand for data center space intensified throughout 2016, and with the public’s appetite for online videos and a growing corporate thirst for the Internet of Things, prospects in the sector look quite bright. In fact, according to JLL’s latest Data Center Outlook, some major cloud providers anticipate the need to triple their infrastructure by 2020.    

Last year, North American users set new records by absorbing another 357.85 MWs in the top US markets, and 46.3 MWs in the top Canadian markets. Northern VA accounted for nearly one third of the US total, a major boost over the 63 MWs the market absorbed in 2015. Other leading markets were Chicago, which in 2016 saw 56 MWs absorbed, nearly double its 2015 amount, and Dallas, which declined from 42 MWs in 2015 to 36 MWs.

JLL also notes that while demand is strong, it’s possible that foreign currency exchange fluctuations, rising interest rates, disruptions caused by mergers and acquisitions, and policy shifts could slow data center growth.

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.