Large Supply Pipeline Sets Stage for Market Growth in 2019
August 21, 2019
Total capacity of U.S. primary data center markets grew by 200 megawatts (MW) or 8% in H1 2019.
More than 411 MW of additional capacity, 35% of it preleased, is currently under construction and scheduled for delivery in the near term.
The U.S. primary data center markets recorded 171 MW of wholesale turnkey colocation absorption in H1—57% of the full-year record level in 2018.
Enterprise users’ adoption of hybrid colocation strategies has raised their interest in facilities that offer more than just competitive rental rates, including multi-cloud access and dense connectivity. This is a growing trend across all industries as enterprises seek more agility for their business, real estate and IT needs.
Competitive pricing lowered average asking rental rates in many markets, as providers sought net-new requirements and companies strived to reduce operational expenses.