DATA CENTERS
WHY INVEST IN DATA CENTERS?
Data centers provide highly secure locations for sensitive equipment for storing and collecting electronic data. They require increased ventilation, air conditioning (HVAC) and specialized mechanical systems.
Most often they are located in light industrial areas and appear as office or warehouse buildings from the outside.
According to IDC, data usage is on track to grow at a 24% compound annual rate through 2025. That should drive the need for additional infrastructure to transmit and store data, including more data center capacity.
Another benefit of data centers are their tenancy to be relatively recession-proof. That’s because most tenants sign long-term contracts for space in a data center, allowing data centers to generate recurring revenue.
MARKET CONDITIONS
As of April 2022, data center inventory in top markets grew 17% year-over-year, even as the vacancy rate fell to just 7.2%, suggesting demand was outpacing new construction.
The global data center market size was valued at $215.8 billion in 2021 and is estimated to reach $288.3 billion by 2027, growing at a CAGR (Compound Annual Growth Rate) of 4.95% during the forecast period.
STRATEGIC ADVANTAGES
Some of the core market advantages to consider when looking to invest in data centers include:
- Increase in 5G networking capacity
- Current limited capacity and increased anticipated demand
- Long term lease options
INTERESTED IN LEARNING MORE?
Contact us to discuss what options are currently available and what is involved in owning, leasing and managing data centers.