United States of America Q4 2016 Data Center Trends Report Q4 2016
Smaller and Bigger: Divergent Demand Trends Underpin a Strong 2016:
- Multi-megawatt leasing by hyperscale cloud service providers underpinned another exceptionally strong year for multi-tenant data center absorption.
- Enterprise-driven requirements are generally shrinking as end users become more sophisticated at scaling or right-sizing their IT needs and incorporating cloud solutions that effectively reduce their need for traditional space and power-based colocation requirements.
- More speculative data center capacity is scheduled for delivery in 2017 than in the past several years. This increase in capacity should facilitate increased leasing activity in supply-constrained markets.
- Wholesale growth should continue to be robust for the sector, but demand could vary given the amount of capital that is often at risk and the way technology has shifted business needs.
- The C-Suite is more focused than ever on ways to monetize under-utilized assets and capitalize on market opportunities for their legacy data center assets.