JLL Data Center Outlook Report – What Does the Future Hold for Data Centers Across the US?
In a recent discussion on the future of the data center business in various parts of the United States, industry experts shared their perspectives on their local markets and the trends ahead.
Highly dynamic data center providers like DC Deployed are best positioned to flourish in the upcoming years. This is primarily because the data center business is characterized by its enduringly changing landscape, where adaptability stands as the key to survival.
In the grand scheme, the prevailing trend strongly suggests a consistent and significant growth potential. This presents a valuable opportunity that DC Deployed intends to seize by providing exceptional services within the Data Center sector. Mainly in the early development phase like program requirements and basis of design, program development, and site selection, all of which are, and will remain in high demand during the coming years.
The Atlanta market has seen a remarkable surge in activity, evolving from a Tier 2 market into a dynamic hub, with a projected power capacity of 123 megawatts for the current year.
Chicago, on the other hand, is experiencing growth primarily through the acquisition of smaller providers. Expectations are high for continued expansion, with several new data center campuses set to come online.
Phoenix attributes its market growth to the presence of major tech companies and cloud computing providers, resulting in the leasing of up to 500 megawatts. While a slight slowdown is anticipated in 2024 after reaching peak leasing this year, no signs of slowing down have been noticed yet, as the rise of AI is expected to sustain the market’s momentum.
Across the US, there’s a noticeable supply deficit that is compelling clients to seek new locations to meet their data center needs over the next two to three years. To address this deficit, suppliers are actively exploring expansion opportunities in new territories, as many have exhausted available space on their existing campuses. With the scarcity, also comes the rising prices, which constitute another challenge in an otherwise thriving market.
These insights collectively depict a dynamic and evolving data center landscape in the United States, where growth, acquisitions, and strategic moves are poised to shape the industry’s future.