By Walter Bialas, September 13, 2018
DFW data center market sees dominant enterprise* activity – with increasing cloud interest.
According to JLL’s recently completed Data Center Outlook, 2018 has seen strong demand across all major markets, in both new development and facility expansion. In fact, demand has been insatiable as healthcare, finance, real estate and automotive begin to use the powerful blockchain platform and move to cloud-based storage. Even as the industry shifts and evolves, DFW remains one of the major U.S. data center hubs.
Contributing to this is our diverse base of corporations that touch all the dominant business sectors, as well as our comparatively low electricity costs. Electricity matters – after all, the capacity of data centers is measured in megawatts, not square feet like other property types. Dallas is also seeing a lot of activity in demand from Fortune 500 and 1000 companies – not a surprise given the already large cluster of corporate headquarters in North Texas.
One of the most important takeaways from this report and DFW’s position as a leading data center hub is that almost all companies, large and small, have data center needs. As we continue to grow companies in North Texas, we should all be on the lookout for opportunities to connect these business with our exceptional data center providers
*Fortune 500 and 1000 companies
- Data center demand continues to be diverse, across a variety of industries and companies in DFW.
- DFW is a mature data center market that has recently been dominated by corporate Fortune 500 to 1,000 (enterprise) users, with transactions averaging 250 kW to 2.5 MW each.
- Net absorption in DFW has been one of the strongest of the U.S. markets, totaling 16.5 MW. This has been driven by a combination of growth in local corporate users, combined with the region’s cost-effective power rate.
- Continued corporate growth, cloud exchange development and evolving technologies make DFW a user market now, with significant new development opportunities on the horizon.
- Major market movers include Google’s recently announced 375-acre data center in Midlothian, just south of the DFW Metroplex. In addition, key industry players like Digital Realty, EdgeCore, Stream, Skybox, DataBank, QTS and CyrusOne have all acquired land or started construction on new speculative data centers.
Click below for the most recent Data Center Outlook report.