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The following content is from an older version of this website, and may not display correctly.While third quarter saw slow wholesale data center leasing activity in the US, "pent-up demand should result in a strong fourth quarter", forecasts commercial real-estate firm Grubb &Ellis. The company's most recent market update focuses on the Texas market, three of whose major metros are expected to have an active final three months of the year.
Overall, the Texas market has seen an influx of transactions between 300kW and 600kW in size ÔÇô most of them expansions of corporate footprint. Two major forces are currently at play in the state. One is a recent revision of the tax code, which requires companies with servers in Texas to chare sales tax on customer purchases, and the other is the state's Emerging Technology Fund, supplying financing for technical and scientific R&D projects for companies and universities.
Out of the three major Texas metro markets ÔÇô Dallas-Fort Worth, Austin and San Antonio ÔÇô Grubb &Ellis expects DFW to see the most activity in the fourth quarter. A number of major financial-services players could collectively take more than 8MW of wholesale space in the region and another 10MW could be taken up by hosting, disaster-recovery and cloud-based service providers.
Wholesale-POD space in DFW is priced between $125 and 170 per kW. There are currently five options available for immediate occupancy in the region at 2MW or more, including Stream Realty, Digital Realty Trust, CyrusOne, DataBank and BCBS properties. 3000 Skyline is marketing its recently completed 100MW data center in Mesquite to users looking to take 40,000 sq ft at a time. Additionally, DataBank is offering its 30,000-sq-ft 11MW data center.
A lot of space is available in former semiconductor factories that can be quickly repurposed as data centers.
In the Austin market, Data Foundry commenced construction of a $150m, 250,000-sq-ft facility, with a 12MW Phase 1 slated to bring 55,000 sq ft of raised floor in June 2011. University of Texas completed a new 10,000-sq-ft, 2MW data center on its campus.
There is interest in several high-capacity deals in San Antonio, which offers low electricity rates ($0.055) because of a favorable regulatory environment and the fuel portfolio of CPS Energy. The power provider uses nuclear and renewable sources to generate more than half of its total capacity.
Overall, the Texas market has seen an influx of transactions between 300kW and 600kW in size ÔÇô most of them expansions of corporate footprint. Two major forces are currently at play in the state. One is a recent revision of the tax code, which requires companies with servers in Texas to chare sales tax on customer purchases, and the other is the state's Emerging Technology Fund, supplying financing for technical and scientific R&D projects for companies and universities.
Out of the three major Texas metro markets ÔÇô Dallas-Fort Worth, Austin and San Antonio ÔÇô Grubb &Ellis expects DFW to see the most activity in the fourth quarter. A number of major financial-services players could collectively take more than 8MW of wholesale space in the region and another 10MW could be taken up by hosting, disaster-recovery and cloud-based service providers.
Wholesale-POD space in DFW is priced between $125 and 170 per kW. There are currently five options available for immediate occupancy in the region at 2MW or more, including Stream Realty, Digital Realty Trust, CyrusOne, DataBank and BCBS properties. 3000 Skyline is marketing its recently completed 100MW data center in Mesquite to users looking to take 40,000 sq ft at a time. Additionally, DataBank is offering its 30,000-sq-ft 11MW data center.
A lot of space is available in former semiconductor factories that can be quickly repurposed as data centers.
In the Austin market, Data Foundry commenced construction of a $150m, 250,000-sq-ft facility, with a 12MW Phase 1 slated to bring 55,000 sq ft of raised floor in June 2011. University of Texas completed a new 10,000-sq-ft, 2MW data center on its campus.
There is interest in several high-capacity deals in San Antonio, which offers low electricity rates ($0.055) because of a favorable regulatory environment and the fuel portfolio of CPS Energy. The power provider uses nuclear and renewable sources to generate more than half of its total capacity.