Look no further than Seattle-Portland as being one of the top US data center areas with 352,000 square feet of data centers under construction. More growth expected in the future, the Pacific northwest is an ideal location for data centers.
According to the JLL North American Data Center Perspective Winter 2016 report, Seattle-Portland area data centers made it into the top 10 bracket in the US markets for data centers. Data centers across North America are facing a huge amount of growth, in 2015 there was a 6.1 percent increase in growth rate. This is due to private industry and government outsourcing their data hosting more and more businesses are going online. Content providers such as Netflix and Comcast are seeing a huge increase due to data driven entertainment, which is becoming the norm.
Key trends driving data center growth: migrating to the cloud and content owners expanding their services for consumers. Also, the threat of cyber-attacks and cybersecurity are hot topics for private and public sector organizations so they’re looking into businesses that can provide security in these areas. They’re willing to pay top dollar for top-of-the-line technology, redundant network, facilities, service and compliance. Smaller companies and startups also have the desire for cybersecurity as well.
With every business or organization large, small, private or public looking for more secure solutions and using a lot more data, cloud hosting has become increasingly popular. This is causing these businesses and organizations to look into multi-tenant data center MTDC providers.
MTDC providers have three key real estate factors to consider when deciding where a data center will be located:
- Energy, tax and construction costs
- Proximity to the user’s customer to minimize latency
- Demand, how to service it
A huge factor for MTDC providers is energy cost. Other significant expenditures are construction and IT infrastructure investment costs. To encourage relocation of data centers some states like Texas are passing tax incentives. The recent tax legislation provides 100 percent exemption from sales tax on business personal property necessary for data center operation for large users.
Data center markets in and around large metropolitan areas are also seeing an increase. Northern Virginia saw an increase of over 60 MW in 2015, driven by the cloud hosting industry. Washington DC metro area companies, content providers and federal government are also needing more accessible cloud hosting space.
Take away from the JLL North American Data Center in 2015 for the Pacific Northwest—Due to capital debt and equity markets being fluid many national and global large-scale developers will look to Washington and Oregon to fulfill west coast needs of growing. 2016 will bring the following to the Pacific northwest, Asian demand will increase as major transpacific fiber cables are developed and enhanced. Urban and central business districts will see demand near the Internet exchanges as edge deployments in rural markets increase.
With over 6,000 square feet of colocation space in the heart of downtown Seattle, Bellevue, Redmond and Tacoma Colocation NorthWest is ideal company for your colocation needs. Colocation NorthWest has an established network which allows interconnection points to Canadian, Asian, European and American network service providers. Any business or organization private, public, large or small will be able to get fast, cost effective, reliable and secure data to meet your business needs.