Intelligent Investment

Secondary Market: Denver

North America Data Center Trends H2 2022

March 3, 2023 4 Minute Read

04-DEN

Explore the North America Data Center Trends H2 2022 Report

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Colocation Insights

  • Hyperscale edge deployments constituted most absorption in 2022.

Market Trends

  • Data center developers are focused on Aurora and Colorado Springs, due to land and power availability.
  • Rack density is increasing to accommodate future loads.
  • Most operators are deploying cooling solutions that require less water.
  • Xcel Energy plans to provide a carbon-free electrical system by 2050, with an 85% reduction in CO2 emissions from 2005 levels by 2030. This goal will be accomplished by generating electricity from 80% renewable sources.

Notable Activity

  • Microsoft and QTS Data Centers made large land acquisitions in Aurora.
  • IPI Partners-backed Radius Data Centers acquired a downtown Denver data center at 1500 Champa St., to create a carrier-dense colocation offering.
  • CoreSite acquired land north of downtown for a new campus.
  • The Department of Defense awarded a $9B JWCC contract to Oracle, AWS, Microsoft, and Google, so the DoD can acquire cloud services directly from these providers.
  • Multiple developers are targeting Aurora and Colorado Springs to capture federal cloud workloads, given the region’s proximity to significant military installations.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 3: % of Total Secondary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 4: Market Fuel Mix

Source: Xcel Energy.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

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    Hillsboro

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    At 64.4 MW of absorption in 2022, Hillsboro saw the most demand of any secondary market.

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    Seattle

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    Sabey absorbed I-Nap’s 3 MWs at their SDC Seattle Building 5 facility, adding it to their wholesale offering.

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    The future development pipeline grew, as data center expansion plans are being finalized to provide multi-MW opportunities to support hyperscale demand.

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