Issue link: https://cp.revolio.com/i/786813
THE DATA CENTER JOURNAL | 11 www.datacenterjournal.com markets that are well established and tested? More demand! What about those smaller data center markets? Can we find an emerg- ing data center real estate market in those cities? Who knows what the fu- ture will hold, however technology can be the great equalizer. Some possible drivers could be the demand for com- puting closer to customers. is would require advancements in technology and platforms, as well as advance- ments in the broadband infrastructure to support it. For the moment, this is a stretch into the future that has pos- sibilities with obstacles before it. For now, the big markets will continue to grow until supply is diminished in those markets forcing pricing to rise and customers to go elsewhere or pay the premium. e big players such as many of the data center real estate investment trusts (REIT) in the market place are ramp- ing up their supply globally making their stock an interesting option for investors to diversify their portfolios through real estate. e strength of a REIT for an investor is that they must pay out at least 90 percent of taxable income to shareholders in dividend distribu- tions. Not too shabby. e risk for an investor of a data center REIT is that they are not only vulnerable to what occurs in the Tech sector, but they are equally vulnerable to anything that may impact real estate from weather, energy prices and taxes. REIT's own and operate data center facilities where tech companies park their equipment. A data center REIT depends on the technology industry to grow so that they too can invest in additional space in key markets. With an increasing technology industry that is now being fueled by Cloud busi- nesses the future looks very bright for data center real estate providers, their investors and major real estate markets. As for those smaller up and coming real estate markets? My only response to that question is, if only I had invested in Microso and Equinix when they first started. n The strength of a REIT for an investor is that they must pay out at least 90 percent of taxable income to shareholders in dividend distributions. Not too shabby. The risk for an investor of a data center REIT is that they are not only vulnerable to what occurs in the Tech sector, but they are equally vulnerable to anything that may impact real estate from weather, energy prices and taxes.