Data Center Demand to Continue Surging

Apple’s new command center in Mesa, AZ, should help fuel demand for new data centers in the Phoenix region for years.

CHICAGO—The global data center market has been surging for several years, and experts believe this record breaking growth will continue for the foreseeable future. JLL attributes much of the recent growth to the need for cloud services, and according to its just-released 2018 Data Center Outlook, even after a record-shattering 2016, cloud operators kept up the pace across all major North American markets in 2017, taking around 25% of available data center space in many cities.

And North America is in many ways the focus of this global industry. Overall, North American markets account for more than 60% of the near-400 megawatts currently under construction around the world. Las Vegas/Reno leads the way (40 MW), followed by Toronto (39 MW), Chicago (34 MW), Dallas/Fort Worth (22 MW) and Northern Virginia (22 MW). And although many US occupiers were looking to expand their global footprint in 2017, developers in the US and Canada finished 363.5 MW of new inventory last year.