Legendary data center broker, Allen Tucker, recently posted his thoughts on the state of data center leasing in 2019. At CAPRE, we’re pleased to share his intelligence.
Still on the Tucker Summer Trek America Tour. See you in September! In the meantime, here’s the summary 1st half 2019 data center market update.
#NoVA / #InternetCapitol had lower #datacenter absorption in 1H19 at 86MWs vs 173 MWs in 1H18, while exceeding 1H17 at 50MWs. Keep in mind that no other #datacenter market in the world has ever exceeded 70MWs of annual absorption. I believe this reduction represents a momentary pause as demand takes a breath after an enormous 2018.
At the same time #InnovationAlley (Prince William County, VA; a major data center market southwest of Ashburn) had its best absorption EVER with nearly 25MWs in 1H19. #InnovationAlley had greater demand absorption than all collective east coast Tier 1 data center markets outside of #Ashburn / #DataCenterAlley. Altogether, Northern Virginia’s second largest submarket is now a top location for data center demand in its own right.
In comparison, most US #datacenter markets had significantly lower #datacenter demand absorption in 1H19.
Vacancy continues to be flat in several Tier 1 markets (Atlanta, Boston, Chicago, Dallas, New York). International markets, FLAP (Frankfurt, London, Amsterdam, Paris) are poised for growth similar to 2014 US demand with modest initial deployments by hyperscalers and enterprises. The long term data center outlook has significant positive demand trends.
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