Tuesday, October 17, 2017

Investment in data centres tops $18.2bn in H1 2017 alone making this year a record breaking one for the US sector

Pace of investment is accelerating at an unprecedented speed with $45bn invested in the last five years.

The data centre industry’s continuous expanding players has driven the sector to a record breaking year with $18.2bn being invested in the first half of 2017 alone.

The amount invested between January and June this years has already surpassed the whole of 2016, and is on track to surpass the total for the three previous years combined, according to research from CBRE.

As for the near future, more expansion and investments are expected, with the the data centre supply pipeline continues to accelerate with nearly 284 MW of wholesale capacity currently under construction in the primary data centre markets and 46% of that space already pre-leased (131 MW).

However, CBRE points out that there has been a shift in the past several quarters towards speculative development as a result of sustained demand for data centre services, despite pre-leasing levels consistently been in the 45%-to-65% range over the past several years.

Pat Lynch, senior managing director, Data Center Solutions, CBRE, said: “Over the past five years, more than $45bn of investment capital has flowed into the data centre sector, with more than 50% of that total occurring since the start of 2016.

“The robust adoption of rapidly evolving, data-intensive technology continues on a strong upward trajectory and will drive growth in the data centre sector going forward.”