datacenterHawk

Here's what's happening in the data center industry during 2Q 2018 - 1. Large user demand 2. Increased International Demand 3. Telecom Providers EXIT the space 4. Operators Push Toward Efficiency

Great discussion with Chris Crosby, CEO of Compass Datacenters. We dig in to where the market is going, their latest acquisitions, and his greatest leadership lesson.

Great discussion with INAP Regional Vice President Tom Panarisi discussing the data center industry. Interesting perspective on user changes over the last several years related to both increased services and growth in the market.

Cyxtera President of Data Center Services Randy Rowland and I go topic by topic talking about the data center industry - and how Cyxtera is working to change the game.

A great discussion with Chris Downie, Flexential's CEO where we covered the state of the data center industry, his approach to leading the company, and how the industry will change over the next several years. Topics also covered include: * Data Center Market Investment * Hybrid IT users * Flexential's Growth Plans * Industry Vertical Trends * New Facility Delivery * What Leaders Have Impacted His Career

Several trends emerged in 1Q 2018 in the data center industry, and we are discussing them here. Hyperscale leasing continued to be focused on scale, flexibility and timing. Vacancy rates increased in the top 4 largest data center markets. The "Planned Power" market we track at datacenterHawk increased across the board as well, and Hybrid Solutions were front and center as data center users mature in their consumption of IT infrastructure.

The Chicago market continues to see development activity and user interest in both the downtown and suburb areas of the greater Chicago area. Several new data center operators announced new future projects for the market, which will add over 60+ MW of commissioned power when fully delivered.

Several data center trends took place in Dallas in the first quarter of 2018. The market absorption was lighter than normal, but we anticipate Dallas will get to the traditional 30 MW of absorption by the end of 2018. Garland is continuing to show itself as an area where several data center operators are preparing for long term growth. The demand is coming from enterprise users and smaller cloud requirements.

The Northern California Data Center Market is increasingly active and looks to continue this trend in 2018. The market posted over 6 MW of gross absorption in the first quarter, with additional supply coming online that pushed the vacancy rate higher. We believe we'll continue to see data center operators entering this market in 2018 from a strategic standpoint.

It was a busy 1Q for the Northern Virginia Data Center Market. The area saw high levels of absorption, continual interest from large transactions and data center operators focused on long term growth. The Northern Virginia data center market is approximately 800 MW of commissioned power and the vacancy rate stood at 5.6% at the end of the quarter.