Signs point to unprecedented growth in data generation in 2020
Newmark Knight Frank (NKF) announced the release of its second half (H2) 2019 Data Centers report, providing insights on industry and market trends in 10 top data center markets in the U.S. — Atlanta, Chicago, Dallas/Fort Worth, Los Angeles, New York, Northern California, Northern New Jersey, Northern Virginia, Phoenix and Seattle.
NKF’s H2 Data Center Report provides major insights effecting the top U.S. data center markets including information on the latest leasing absorption statistics, new developments, recent transactions, energy providers, technology, and incentives offered for data center development and operation. The report is based on data and trends from Datacenter Hawk, 451 Research 2020, Data Center Frontier and NKF’s Global Knowledge Center.
“Coming off a record shattering 2018 year, data center leasing in 2019 was still very healthy yet down, with over 272 Mega Watt (MW) of absorption in the Top 10 U.S. markets tracked by NKF,” remarked NKF Executive Managing Director Bryan Loewen, NKF’s global data center practice leader. “NKF is tracking multinational and local requirements, projecting 2020 to be another solid year of leasing led by many of the largest and second-tier hyperscale players.”
NKF’s report highlights standout markets for absorption, which includes Northern Virginia, posting nearly 120 MW of new leases executed, Northern California with 40 MW of absorption and Dallas/Ft. Worth’s 30 MW of leasing activity. Atlanta closed the year with over 19 MW leased in the fourth quarter, making it the fourth largest U.S. market in 2019 with 24 MW of absorption, compared to only 2 MW in 2018.
The report also discusses hot button issues impacting data center operation and development including new state-based incentives, regulatory requirements and how “edge” requirements are dramatically increasing demands in many major markets with the emergence of 5G, IoT, and AI technologies pushing content and data further and further towards the end users.
NKF’s Data Center Report also looks forward to trends and activity impacting 2020 and beyond. “Going into 2020 there are many new trends that will affect data center growth across the U.S.,” added Loewen. “Surging data volume, environmental challenges and new technology are some of the factors discussed in NKF’s Data Center Report that will have a deep impact on the industry.”
For access to the full NKF H2 report, click here.