Northern Virginia Update

National Highlights

  • Improving economic conditions,favorable views for recovery and the return of capital availability are driving activity in the data center sector.
  • For both large and small enterprise data center users,demand trends continue to favor operating expense models that call for outsourcing some infrastructure and service components.
  • Supply in the pipeline primarily consists of wholesale space. An increasing number of smaller wholesale suites are becoming available,generating higher levels of commerce and blurring lines differentiating wholesale and retail models with respect to infrastructure.

Spotlight:Northern Virginia

  • Virginia has seen increasing design-build interest from the user community,with a number of operators rumored to . . . →Read More:Northern Virginia Update

Show me the money! Part I

Over the last couple of months,we have evaluated a couple of wholesale deals that were pretty interesting.  For obvious reasons,we will not share who the clients were or who the prospective landlords were.

Our search was based on 1mW or more and ten year deals.  We looked at the four major costs items;rent,energy &energy efficiency,network connectivity and migration costs.

On one deal,our annual lease cost ranged from $2.9 million to $5.5 million.  We surprised even ourselves on this one.   A $2.6 million spread between high and low.  Taken over ten years this represents a NPV differential of almost $18,000,000.  

It’s easy to guess . . . →Read More:Show me the money! Part I