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

Data Center Investment

Historical

  • Since 2008,the largest data center leases that have been signed  are technology-related companies such as Google,Yahoo,Microsoft,Apple and Facebook.
  • Facebook has absorbed more wholesale data center space than any other company during the last two years. However,colocation and cloud companies are not far behind.
  • During the last two years,companies have shifted their focus from building their own data centers to leasing from third-party operators.
  • Some of the reasoning behind this is to reallocate capital to core operations,as well as the availability of wholesale space and competency of the operators.
  • According to Gartner,50 percent of data centers that were built . . . →Read More:Data Center Investment