CBRE 2019 North American data center outlook

Strong demand from hyperscale cloud providers and enterprise companies will continue data center momentum into 2019, according to CBRE.

Factors impacting the sector include hyperscale cloud providers and enterprise companies seeking to capitalize on the growth of global data consumption and the rapid evolution in technology, including the Internet of Things (IoT), edge computing and 5G.

CBRE also expect continued adoption by our end-user clients of a Hybrid IT strategy combining their technology needs into strategic relationships with colocation providers and multiple cloud services. Agility and flexibility for colocation, IT services and investment will be key themes for the data center industry in 2019.

Large absorption occurred in the seven primary U.S. data center markets: Atlanta, Chicago, Dallas/Fort Worth, New York Tri-State, Northern Virginia, Phoenix and Silicon Valley. 2018 year-to-date recorded absorption for the U.S. primary markets is 80 percent of the 2017 record level and remains a bullish indicator moving into 2019.

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