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Area Development - Site Selection, Facility Planning and Workforce Development

Expanding the Cloud: The Top Data Center Markets in North America

Data Centers 2015
Cloud computing is on the rise and so are North American data centers. Cisco forecasts that global data center traffic will triple by 2017 to 7.7 zettabytes, a compound annual growth rate of 25 percent.

That means an expanding data center market, and even though demand is up, prices are still reasonable. In fact, the data center market is seeing high demand and low prices – an unusual combination. The competitive pricing is due in part to the large number of options available, yet the industry is expected to enjoy 32 percent growth in North America by 2016, ultimately becoming a $14.8 billion market, according to 451 Research.

Over the past five years, data center needs have grown exponentially, and to understand how fast it is growing, JLL researchers looked at top and emerging cities for data centers in an effort to help executives make optimal location decisions.

SlideshowTop Data Center Markets in North America North American Data Centers - Tier 1 and Emerging Markets Map
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  • North American Data Centers - Tier 1 and Emerging Markets Map North American Data Centers - Tier 1 and Emerging Markets Map
  • North American Data Center - Tier 1 and Emerging Markets North American Data Centers - Tier 1 and Emerging Markets - Status and Outlook
  • Atlanta - Overall employment growth, corporate headquarter relocations, and regional office expansions are contributing to an improving economy which directly benefits providers of data center space. Atlanta - Overall employment growth, corporate headquarter relocations, and regional office expansions are contributing to an improving economy which directly benefits providers of data center space.
  • Chicago - In response to natural disaster risk mitigation, there is an uptick in national searches focused on the central U.S. and Chicago in particular. Chicago - In response to natural disaster risk mitigation, there is an uptick in national searches focused on the central U.S. and Chicago in particular.
  • Dallas - Fort Worth - As utilities become more important in the central and southwestern United States, providers are locking in on longer-termed fixed electrical pricing. Dallas - Fort Worth - As utilities become more important in the central and southwestern United States, providers are locking in on longer-termed fixed electrical pricing
  • Houston - Demand is coming from all industries due to the significant population and job growth in the Houston market. The largest demand is still coming from the oil and gas sector as technology is critical to drilling and exploration efforts. Houston - Demand is coming from all industries due to the significant population and job growth in the Houston market. The largest demand is still coming from the oil and gas sector as technology is critical to drilling and exploration efforts.
  • Los Angeles - Colocation providers continue to search for new opportunities to expand the demand of small users. Los Angeles has become a market of small users that are dealing with organic growth. Los Angeles - Colocation providers continue to search for new opportunities to expand the demand of small users. Los Angeles has become a market of small users that are dealing with organic growth.
  • Minneapolis/St. Paul - With numerous options for retail and wholesale colocation, demand is increasing. Tax incentives allow tenants of qualifying colocation facilities a sales abatement on all power costs, which is one of the most extreme incentives in the nation, drwaing out-of-state companies. Minneapolis/St. Paul - With numerous options for retail and wholesale colocation, demand is increasing. Tax incentives allow tenants of qualifying colocation facilities a sales abatement on all power costs, which is one of the most extreme incentives in the nation, drwaing out-of-state companies.
  • Northern New Jersey - New colocation facilities have been opening, nearly doubling supply. This has increased competition between providers and encouraged users to look for low cost options. Demand is primarily coming from financial services, with healthcare and technology following behind. Internet content providers have also entered this market. Northern New Jersey - New colocation facilities have been opening, nearly doubling supply. This has increased competition between providers and encouraged users to look for low cost options. Demand is primarily coming from financial services, with healthcare and technology following behind. Internet content providers have also entered this market.
  • Northern Virginia - Tech is dominating the demand, with continued interest across all industry sectors. Though overall employment growth is weak, the demand for data center workers has increased, creating a solid knowledge based IT workforce. This means competition will force aggressive pricing while widening with new market entries. Northern Virginia - Tech is dominating the demand, with continued interest across all industry sectors. Though overall employment growth is weak, the demand for data center workers has increased, creating a solid knowledge based IT workforce. This means competition will force aggressive pricing while widening with new market entries.
  • Phoenix - The majority of West Coast-based companies have been seeking out Phoenix for its data center solutions. Demand is relatively even and stable within all industries, with tenants continuing to seek flexibility in colocation facilities as enterprises avoid overcommitting power. Phoenix - The majority of West Coast-based companies have been seeking out Phoenix for its data center solutions. Demand is relatively even and stable within all industries, with tenants continuing to seek flexibility in colocation facilities as enterprises avoid overcommitting power.
  • Seattle-Portland - There is an abundance of retail colocation options in Seattle-Portland, as data center activity has increased and it serves as a major tech hub. Cloud users and content delivery companies are expanding here, for the inexpensive power available and strong network backbone. Seattle-Portland - There is an abundance of retail colocation options in Seattle-Portland, as data center activity has increased and it serves as a major tech hub. Cloud users and content delivery companies are expanding here, for the inexpensive power available and strong network backbone.
  • Silicon Valley - Local tech companies will continue to drive growth. However, inventory levels have dropped as many projects are planned but have yet to begin construction. Low power rates are keeping the market successful. Silicon Valley - Local tech companies will continue to drive growth. However, inventory levels have dropped as many projects are planned but have yet to begin construction. Low power rates are keeping the market successful.
  • Greater Toronto Area - A significant number of planned opportunities are expected to create competition, will demand coming from all industries. Recent successful developments are also helping to amplify the Greater Toronto Area as the place for international and domestic data center. Greater Toronto Area - A significant number of planned opportunities are expected to create competition, will demand coming from all industries. Recent successful developments are also helping to amplify the Greater Toronto Area as the place for international and domestic data center.
  • The North American data center market is expected to grow by 32.0% to $14.8 billion from 2014-2016 The North American data center market is expected to grow by 32.0% to $14.8 billion from 2014-2016

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