Data Center Journal

VOLUME 48 | FEBRUARY 2017

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10 | THE DATA CENTER JOURNAL www.datacenterjournal.com P redicting the future is never clear and ap- parent. Scott Adams, satirist and the creator of the Dilbert comic strip once stated that there are two ways to predict the future: "1) reading horoscopes, tea leaves, tarot cards, or crystal balls . . . collectively known as "nutty methods;" 2) put well- researched facts into sophisticated computers . . . commonly referred to as a "complete waste of time."" Predicting data center real estate emerging markets is impossible, how- ever there are some common themes that have spawned existing data center real estate markets that may give us a glimpse into how new markets can be formed. e major data center real estate markets have a common thread; large populous and economic centers that are near an ample power supply and robust connectivity to the world. What makes one city more popular than the other can vary from local industry fluctuations in demand such as the tech sector in Silicon Valley (Santa Clara/ San Jose, California) and the Government sector in Northern Virginia to a demand for geographic centrality like Dallas, Texas. Per 451 Research, an informa- tion technology research and advisory company, the top 5 data center real estate markets over the past 5 years have, for the most part , remained consistent, however their position on that list may have changed based on many factors that include regional industry fluctuations and demand. e following charts provided by 451 Research show the operational data center square feet in each of the major markets in 2011 and 2016. e item to note is the steady increase in data center real estate space in the top five markets and the city position change based on available data center space in that market. One reason for the growth in the data center real estate market has been the surging technology sector that has been fueled by the Cloud. Data center real estate providers across the US and globally are working quickly to meet the increasing need. Data center location and its relationship to power, connectivity, natural disasters and incentives has always been important to Enterprise, colocation users and the same is true for cloud providers. What does this mean for existing data center The major data center real estate markets have a common thread; large populous and economic centers that are near an ample power supply and robust connectivity to the world. What makes one city more popular than the other can vary from local industry fluctuations in demand such as the tech sector in Silicon Valley and the Government sector in Northern Virginia to a demand for geographic centrality like Dallas, Texas.

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