Large Transactions Drive Data Center Velocity

Darren Eades is a JLL EVP in Los Angeles.

Data center real estate activity is on the rise in Los Angeles, according to new research from JLL. Heightened demand for fast and reliable data and cloud services has fueled the growth, and as a result, data center absorption reached 6 million square feet last year. Cloud services specifically are driving the demand, accounting for 30% of the activity.

“Los Angeles has historically been a  flat data center market made up of smaller transactions driven by local demand,” Darren Eades, JLL Executive Vice President, tells GlobeSt.com. “We are finally seeing larger transactions taking place thus increasing the velocity in the market. In addition to the current base expanding its footprint we have seen large players like Google dramatically increase their footprint.”