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What’s Driving Data Center Performance

Data Centers are a critical player in how we live our lives. Our current environment—of increased online learning, working from home, and virtually connecting with friends and family—has only highlighted their key role. In fact, the demand for ecommerce and virtual connectivity during this global pandemic underlies significant financial performance—Data Center REITs outperformed other sectors during the first half of 2020.

Research from JLL identified three themes driving Data Center performance this year:

  1. The Resilience of Data Centers: Their ability to reliably deal with increased demand even while managing the challenges of staffing the Data Center and keeping their employees safe.
  2. Revenue Backlog: IT spend changed because of the pandemic. Some enterprises delayed deals and others shifted to the public cloud as a flexible and scalable option.
  3. Global Expansion: Overall operators are using this time to find the market with the greatest return, and those market forces in the US have pushed Data Center operators to expand internationally.

Data Center supply and demand fluctuates, depending on your market within the U.S.  Demand has slowed down in markets like Boston and Houston, though supply in those locations remains healthy. And demand has increased in markets like Northern California and Northern Virginia, with hyperscale dominating the market forces in these locations.

As you navigate these challenging times, DSI is here to help you ensure your Data Center meets the needs of your business and your customers. From building a new center, to making sure that your infrastructure is able to meet the needs of your mission critical facility, we can help.

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