Data Centers Are Losing Their Niche Status

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 manages some 70 million square feet of data center space on behalf of clients. Here, he surveys the current landscape for the sector as well as what’s ahead.

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Posted Under: CBOR News