Industry analysts such as Forrester, Gartner, and IDC offer a host of tech trends and predictions for the data center industry in 2017. For additional viewpoints of the industry, we turn to real estate advisers JLL and CBRE and their 2016-17 data center market forecast and readouts - highlighting overall findings as well as specific research on the Dallas and Phoenix markets.
- Accelerating cloud adoption will double the size of the data center industry by 2021 (JLL)
- Enterprises continue migrating away from owning data center properties (CBRE)
- A surge of demand for data center space has dallas area hitting record levels of leasing velocity (CBRE)
- In Phoenix, “tenants are beginning to prioritize flexibility for expansion or reduction in square footage and power density” (JLL)
Overall, data center demand in 2017 will be driven by:
• Accelerating cloud adoption, which will double the size of the data center industry by 2021 (JLL)
• A move toward the edge, with companies “bringing data closer for greater reliability and speed” (JLL)
• The “realities” of global climate change, which have “spurred increasingly effective energy efficiency solutions” (JLL)
• Data center decision makers who are “using increasingly sophisticated criteria when they shop for location, space and power” (JLL)
• Continued high demand for sale/leaseback, colocation, and managed services among enterprises who have over the past five years “migrated quickly from owning data center properties” (CBRE)
To learn more about the tech trends that are driving the data center market forecast for Dallas and Phoenix download this white paper.