JLL Data Center Outlook 2016

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New Jersey Data Center Outlook

In New Jersey, supply is somewhat ahead of demand at the moment, creating a more tenant favorable market. Historically a financial services driven market, the activity is more spread out over a diversified tenant base which includes social media, healthcare and technology clients.

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“The current supply allows for special concessions, like the flexibility for tenants to ramp their occupancy, which makes data centers in New Jersey more attractive,” said Jon Meisel, Managing Director and New Jersey Data Center Lead.

It is expected that users will maintain significant leverage until  the existing supply displays greater absorption. Pressures on rates will remain in place, and the providers with superior connectivity and flexible rental models will have the upper hand.

National Data Center Outlook

Unprecedented demand for online content such as movies, videos, apps, social media and photos have become a staple part of the digital diet.  And according to JLL’s latest data center report, the adoption of cloud services to store all this content is expected to double the size of the North American data center industry by 2021.

The JLL report covers 17 North American markets for data center facilities, and reveals the top trends influencing U.S. data center locations, including:

  1. Cloud adoption will double the size of the data center industry over the next five years. Cloud adoption is racing ahead at break neck speed and even this year, JLL has seen record absorption of data center space totaling 274.2 MW. This is spurring a development surge across the country, especially in markets like Northern Virginia where 1.13 million square feet is under construction and a further 2.67 million square feet is planned.
  2. Data center users are disbursing data across locations, aligning with smarter data management strategies. Data center providers and users alike are getting smarter about location planning and load management, while pursuing shorter, more flexible lease structures.
  3. Data sovereignty laws are redrawing the global data center location map. From Brazil to Russia, the industry’s biggest players are expanding internationally faster than ever to meet growing demand and help users stay compliant with regulations designed to keep data inside a nation’s borders.
  4. Climate change is shaping data center legislation and technology. The realities of global climate change have spurred effective energy efficiency solutions, from refrigerant-based cooling systems to the continuing rise of data center micro grids.

Download the full Data Center Outlook Report here.

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