August 6, 2019
New research by CBRE shows that supply has edged ahead of demand for data centers in North Texas. The brokerage firm’s H1 2019 data center report reveals roughly 28% of data center capacity was available in the Dallas-Fort Worth market.
CBRE researchers wrote in the report: “The DFW wholesale colocation market is as competitive as it has ever been, with 17 facilities in the Metroplex having at least one megawatt of vacant capacity available. For tenants, this is great news. DFW offers many options, and users are leveraging competitive supply to achieve attractive pricing and deal terms.”
The DFW region ranked among the top three U.S. data center markets the last three years, according to CBRE. Currently, there is 34.6 megawatts under construction in DFW, with a robust long-term construction pipeline exceeding more than 400 megawatts. Construction activity includes facilities for QTS Data Centers, Equinix and Stream Data Centers, along with Google’s $600-million data center that recently got underway south of Dallas in Midlothian.
CBRE also noted investor interest has grown in the product type. Researchers wrote, “As investor interest has picked up globally in the data center asset class, Dallas remains a target market for acquisitions via sale leaseback, where users sell owned data centers, convert into a lease structure and continue to operate the facility.”
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