Data Center balance: Navigating supply and demand

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By JLL Dallas

Dallas-Fort Worth is situated at the center of Data Center growth; navigating heavy absorption with rising demand while rental rates remaining relatively flat.

Texas Real Estate Business magazine spoke to JLL Vice President Ali Greenwood to get the latest and learned how data center developers are using a unique strategy, allowing them to create large facilities with low risk of oversupply.

“With this asset class, larger owner-operators will develop large buildings, say 250,000 square feet,” says Greenwood. “But they aren’t actually adding that much new supply — projects that size will usually only deliver about 20,000 to 40,000 square feet of true IT space. When about half of that space is absorbed, they kick off the next ‘data hall,’ as a means of maintaining balance.”

Fast delivery times also help maintain the supply-demand balance, says Greenwood.

Click here to read the full story from Texas Real Estate Business magazine.

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