Originally posted to Data Center Frontier by Rich Miller
Trends in Demand
The Dallas data center market experienced about 5 megawatts (MW) of absorption in the first quarter of 2018. We anticipate this number will be larger in 2018 on a quarterly basis, as several transactions are pending that could take some of the existing commissioned power off the market.
From a demand perspective, Dallas averages approximately 20 MW of net new growth per year. The first quarter results have kept pace, positioning the market for growth should these larger deals materialize.
One of the primary factors driving absorption is the healthy economy and the growing list of large businesses, which generates Dallas data center demand. Smaller cloud requirements have also picked Dallas over the past 12 months because of the competitive provider market and favorable economic situation, a key segment of the growing out-of-market demand.
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