Following its acquisition of one of East Coast's largest carrier hotels at 111 8th Ave. in New York City, Google has taken all the space that was available in the building off the market. The building is home to a number of commercial data center providers, including Digital Realty Trust, Telx and Internap, among others.

Michael Mandel, real estate advisor at Grubb &Ellis's national data center practice, said the move will have an impact on the Manhattan data center market as data center space there is short supply. While there was no developed data center space left at the building that was not already leased out, there was a lot of office space that could be converted.

"There was space left there before they bought the building," Mandel said. "All of the space  that was on the market they've taken off. People looking for data center space are not going to be able to get new space in 111 8th."

According to Mandel, the last data center lease transaction that took place at the carrier hotel was Digital's sublease of 53,000 sq ft to Telx shortly before it was sold.

Google confirmed that it had bought the building in January.

The building has been a desirable data center location because of the high volume of network carriers located there. Of the roughly 3m sq ft of space there, about one-third is data center space, Mandel said.

Whether existing data center companies currently leasing space there will be able to renew their leases when they expire is also an uncertainty.

"Existing data center tenants in that building are going to (have to) think about what their options are moving forward," Mandel said. "It's unclear, as of right now, what Google is willing to do with data center tenants: whether they're going to allow them to renew, or force them out."

A Google spokesman declined to comment on the subject.