Last quarter saw a neutral data center market in DFW. JLL's new data center outlook research shows the tides are turning to a user-favorable market with 18 MW of net absorption through June.

The significant amount of new data center development solidifies Dallas as one of the top three markets (along with Chicago and Northern Virginia) in the US, JLL EVP Curt Holcomb tell us.

While supply is constrained now, wholesale providers will level the playing field for the next few quarters. JLL predicts users will have significant leverage later this year when new supply nears completion and providers seek anchor tenants. Providers will be challenged to keep up with growing demand in upcoming years, but Curt doesn't foresee supply or demand reaching unhealthy levels anytime soon. Between Q3 2016 and Q1 2017, RagingWire, Digital Realty and ViaWest will all deliver buildings in DFW. Total inventory in DFW stands about 3M SF with 182k SF under construction and 682k SF planned.

Pricing will remain stable through this quarter, and then potentially compress by 3% to 5% as new supply comes online. 

The technology and insurance industries each command 30% of the data center supply in the area. Financial services demands 25%. Healthcare, telecom and retail each use 5%.