Massive deals by Microsoft drove a 25 percent increase in data center leasing activity from 2015, making 2016 a blockbuster year for wholesale providers, according to a new report, which says 2017 may see a continuation of cloud-driven growth.
Digital Realty is doubling down in the Windy City, confirming long-rumored plans for a major expansion adjacent to its huge 350 East Cermak data center campus in downtown Chicago.
The Chicago data center market appears poised for growth. Leasing was strong during 2015, with net absorption of 27 MW of capacity. This robust leasing has prompted new construction, with up to 200 MW of additional capacity planned for coming years. There are several new players entering the Chicago market, while incumbent providers are adding space to accommodate future demand.
The Suburban Chicago data center market is seeing an influx of new providers and supply, which positions the region for growth in the accelerating cloud computing arms race.
T5 Data Centers has acquired a large facility in Elk Grove Village from Forsythe Data Centers, which will continue in place as the anchor tenant.
Chicago is one of the nation’s premier markets for data center services, and home to 1.85 million square feet of data center space. The Chicago data center market has two distinct sub-markets, one in Downtown Chicago and another in the western suburbs.
Digital Realty has acquired a former Motorola headquarters building in Franklin, Park, Illinois, according to local media. The deal positions Digital Realty for growth in the Suburban Chicago market, where cloud players are actively leasing data center space.
QTS Realty has become the master of the Internet-scale data center retrofit. It is now bringing this model to the Chicago market, which has been one of the most supply-constrained markets in the U.S.