The Northern Virginia (NoVa) data center market is the largest in the world and its rapid growth has transformed the local real estate market. Data center capacity more than doubled between 2018 and 2021 due in part to the region’s welcoming business climate and tax incentives.
As developers seek to secure land for hyperscale operators looking to take advantage of the region’s capacity to power cloud computing platforms and social networks, leasing and land values have surged. The increased demand is pushing development outside of Ashburn’s Data Center Alley. Emerging regional sub-markets including the Dulles Cloud Corridor, the Leesburg Cluster, and Prince William County.
Northern Virginia Data Center Market Attributes
NoVa is the home of the cloud for a number of following reasons:
- Competitive Colocation/Cloud Environment – The NoVa market has the largest presence of colocation and cloud providers in the U.S., creating a very competitive environment
- Strategic Location – The NoVa market provides a strategic, cost-effective market for companies needing their data center in the northeastern U.S.
- Relatively Free of Natural Disasters – Other than occasional high winds and rain from hurricane remnants, the NoVa market is typically very safe
- Reasonable Power Cost – NoVa’s power costs are competitive among major colocation markets and is reasonable considering the total cost of occupancy for long-term requirements
- Business Climate – Despite some economic challenges in Virginia over the past few years, the area’s businesses continue to grow, creating data center requirements for the market
This report, in conjunction with Digital Realty, continues Data Center Frontier’s market coverage of growing data center hubs. Explore further for a comprehensive overview of the Northern Virginia data center market.