Kristina Metzger Metzger: “It does not appear, unless market dynamics like electricity cost or taxes change, that large users will select Southern California for their data-center locations unless absolutely necessary for operations.”

SAN DIEGO—San Diego has been a retail colocation market for data centers for some time, with the local operators focusing on smaller requirements with an emphasis on managed services and cloud solutions, CBRE first VP Kristina Metzger tells GlobeSt.com. According to a recent report from the firm, high power costs, elevated tax rates, a lack of incentives and high natural disaster risk are all contributing to the out-of-state migration of large data center users and the increasing focus on smaller, retail colocations in Southern California.

Metzger explains to GlobeSt.com, “Data centers are measured in units of power, not square feet, like traditional real estate. A typical data center lease in a retail or wholesale colocation is typically based on a dollar per unit of power per month, most commonly a kilowatt. One thousand kilowatts makes 1 megawatt, which is the unit most commonly used to track data center absorption.

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Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

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