Investment in the U.S. data center sector reached record levels in 2017, according to the latest U.S. Data Center Trends Report from CBRE. 2017 investment totaled more than $20 billion (inclusive of all single asset, portfolio and entity-level/M&A transactions), surpassing the volume for the three previous years combined.
2017 investment activity was heavily weighted by several large entity-level transactions, as data center providers and users sought to monetize certain assets and migrate to hybrid IT environments. For example, Digital Realty acquired DuPont Fabros and its 12 assets and BC Partners/Medina Capital/Cyxtera Technologies purchased CenturyLink’s 57-asset data center portfolio.
Other report findings include:
Heightened demand from multi-megawatt hyperscale cloud users led to record wholesale positive net absorption in 2017
Accelerating