Demand for Online Content Causing Data Center Surge

DuPont Fabros’ colocation center at 2299 Busse Rd. in Elk Grove Village, IL.

CHICAGO—The demand for online content such as movies, videos, apps, social media and photos is expected to double the size of the North American data center industry by 2021, according to JLL’s latest data center report. And key metro areas such as Chicago and Northern VA, among others, will see developers launch millions of square feet in new facilities. But the rapid evolution in consumers’ data use also means that providers may shy away from leases that lock them into certain spaces.    

“Cloud services, digital content and new data sovereignty laws are setting the data center market on fire,” says Bo Bond, central region lead for JLL’s data center solutions group. “Demand is historically strong, so the onus is on the data center operators to build space fast enough, while also accommodating shorter, more flexible lease structures that have become highly popular as data strategies have evolved.”