Turkey,Data Centers and Dallas

National Highlights

  • Demand continues to outpace supply, primarily by users looking for 700 KW – 1.5 MW (5,000 – 10,000 square feet).
  • In the non-wholesale market (under 500 KW);colocation deals are reaching $350/KW all in.


  • Overall pricing has remained consistent since our last Dallas newsletter,  as rental rates range between $125-170/KW NNN for wholesale PODs.
  • Stream Data Centers is under construction on Richardson II project and will deliver 20,000 square feet of commissioned raised floor in May 2012.  There will initially be 2.2 MW of critical load,expandable to 30,000 square feet of raised floor and 6.6 MW of critical load.
  • Texas has the largest amount of wind generation in the U.S. (10,000 MWs). Iowa is second with 3,000 MWs.
  • RIM sold its Plano data center to Lincoln Properties and plans to deliver up to 36,000 square feet of raised floor (10.5 MW).  Lincoln Properties is partnering with T5 Data Centers for the wholesale development project.
  • Carter Validus acquired a 100% leased data center in Richardson,Texas from Stream Data Centers for $28.9 M.
  • CyrusOne has approximately 20,000 square feet of available space (3.4 MW) built out in Dallas,and is in the process of bringing an additional 18 MW of power to its campus for future growth. In addition,CyrusOne is adding more space adjacent to its existing data center in Houston and anticipates approximately 50,000 square feet (7 MW) of raised floor delivered in 2012.
  • Digital Realty is fully leased at their first building in Richardson. They have now started construction on their second building using their POD 2.0 infrastructure which is expected to deliver 6.7 MW (6 PODs). The first two PODs are scheduled for completion  in Q2/Q3 of  2012.
  • Avista Capital Partners acquired Databank Holdings in Dallas from Freeman Group in June. Freeman Group still owns the data center at 400 S. Akard and they have no intention of selling the property.
  • Mark Cuban plans to develop a number of data centers in South Dallas that will be powered by renewable energy (including garbage and sewer sludge).

Spotlight:Other Markets 

  • A Fortune 500 energy company recently purchased a 150,000-square-foot data center from Stream Data Centers in Westover Hills in San Antonio. They plan on two 10,000-square-foot data halls will be delivered for Phase 1. Construction has not yet begun.
  • Westover Hills continues to be a target location from the enterprise customers due to its less expensive power ($.05/kWh) than Dallas (approximately $.075-$.085/kWh) and other surrounding markets.
  • Oil and gas customers are experiencing growth with their existing providers due to disaster recovery requirements.
  • Houston continues to be a city that demands higher density server infrastructure compared to other Texas  cities.
  • Austin continues to be more of a colocation market than a wholesale market as there are not many users looking for more than 1 MW of power.

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