- Efficiency programs will
install automation to make data center operations more
valuable to the core business.
- Artificial intelligence
will help reduce human intervention in data centers and
significantly cut time to restore operations in the event of
- Artificial intelligence
will make greater use of predictive analytics on-site.
- Processor technology investments will improve cooling and reduce energy usage.
"Data center users are investing in systems that will allow them to use their servers more efficiently and effectively," said Mark Bauer, Managing Director and Data Center Solutions Market Director, JLL. "Essential technological advancements like artificial intelligence to anticipate failures and automation to reduce response time are what the industry needs to keep up with today's digital consumer."
Surprising local market impacts
While data center users are looking to expand their global footprint, North America remains an important location for data storage. In fact, revenue and growth is up for data center companies in a big way in North America. The following markets experienced significant shifts in the first half of 2017:
Virginia: Supply is growing at a historic rate,
driven by its top-tier status in the data center industry.
But with a shortage of available big-block spaces, providers
are scrambling to bring new inventory online as quickly as
possible to capitalize on the market's low vacancy and
pent-up user demand.
Worth: The first half of 2017 brought changes to
the market, with cloud providers officially setting up shop,
spurring a 50 percent bump in absorption. Low power costs
will continue to be a major advantage for the market.
California: Leasing activity regressed to
traditional market levels in the first half of 2017 after
large providers drove absorption in the region throughout
2016. Moving forward, construction and occupancy costs will
continue to decrease as large blocks of space open up for
Driven by continued success of both tenured operators and
newer operators hitting their stride, the market sustained
its strong growth from 2016 during the first half of 2017.
Providers and users are now evaluating ways to enter the
historically underserved market as they look to anchor their
presence in the Southeast.
- Montréal: Following the raging storm of U.S. cloud activity in 2016, big-name cloud providers swooped in to Montréal in the first half of 2017. The timing is right for providers to enter the Canadian market and take advantage of its optimal pricing and low power rates.