Surging Demand from Large Cloud Users Driving Record Absorption
CBRE’s newly released Data Center Trends report examines important trends in the industry across the U.S.
- Demand from hyperscale cloud users led to more than 177 megawatts (MW) of net absorption in the first half of 2018.
- With nearly two-thirds of the 2017 net absorption (an annual record) already recorded in H1 2018, the market is on pace for another record year. Strong investor interest in the data center sector continued, with more than $7 billion of investment in H1 2018, 47% of which was in asset-level transactions.
- Development pipelines in large primary markets like Northern Virginia and Silicon Valley are rapidly being preleased to meet the speed-to-market requirements of occupiers.
- National pricing trends did not keep pace with strong market fundamentals in H1, as cloud users demanded lower prices for the large wholesale colocation capacity transactions they require.
Download the report to learn more about the impact these trends are having on the Data Center industry.
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