Data Center Demand Is On The Rise, Here Are Four Reasons Why

The data center sector is growing fast, and new technologies on the horizon will propel the industry even further. As companies' use of cloud-based tech and mixed reality grows, data centers will continue to see a boom in business.

The industry was up in North America the first half of 2016, increasing by 19% in Q1, then taking a 50% leap in Q2. Here a four takeaways on what's contributed to the industry's growth, aggregated from JLL's data center outlook report for this year.

Data Centers

Cloud Adoption

The use of this tech in the industry will double the size of data centers within the next five years, JLL reports. Experts say the centers will likely benefit from the additional infrastructure, connectivity and storage capacity cloud adoption requires.

Location Planning

Operators are putting more thought into locations, selecting buildings with shorter, more flexible lease structures. Users are growing more innovative in their efforts to find the perfect properties—even turning to predictive analytics to determine what they'll truly need, as not to overinvest.

International Growth

Industry players are taking to international expansion to meet growing demand, and they're doing so with the support of data sovereignty laws—which require data be housed at centers within the same country the data is being supplied. The new laws bring two benefits—they allow users to profit from data, while at the same time bringing new investments to their economies.

Climate Change

The industry is working to improve its bottom line in three areas—people, planet and profit—and as the need to fight global climate change has grown, so has the need for more energy-efficient solutions that require the refrigerated cooling systems data centers provide. New tech and regulations also allow data centers to participate in sustainability programs. 

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Wall Street Impatient For Big Tech Returns On Data Center Spending

As AI Adoption Ramps Up, Half A Million Property Managers Are In The Crosshairs

Treasuries Hover Around 4.7% As Wall Street Questions If Warsh Is A 'Dove In Hawk's Clothing'

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

Churchill Downs Plans To Sell 9 Casinos, Focus On Horse Racing

Bringing Stability And Savings To CRE Insurance Through Working Layer

More Hotel Owners In Need Of Cash Are Getting It From The Big Brands

Former Arms Dealer Targeting Heartland Apartment Takeover Files For Bankruptcy

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme

Equinix Ramps Up Spending Plans Amid Faster-Than-Expected AI Shift

Cortland, Pulte, INVH, Walker & Dunlop Execs Talk Changing Demographics, AI