Digital Realty: Data Center Demand Is Smokin’ Hot

Digital Realty Trust (NYSE:DLR, news, filings) released the results of its survey of North American demand for data centers, revealing just how broad-based and unidirectional the sector’s expansion is right now. Ninety two percent said they will definitely or probably expand this year, while just four percent said they have no such plans. That’s up from last year, but I’m going to go out on a limb and say it’s not going to go up next year — you can’t get more than 92% of respondents to consistently agree they like free money.

It’s certainly not news that demand is high, we all know how much construction is out there and how much more is planned already. 38% say they’ll be expanding in more than three locations, while 42% say they plan to use containerized modules. New York City/NJ, Chicago, Los Angeles, Dallas, San Francisco Bay Area and Phoenix were tops on the locations for expansion, which seems to leave out DC/Ashburn – I guess Phoenix is on the rise.

Meanwhile, Digital Realty also picked up a contract in London.  Source Managed Services has signed a long term lease at their Redhihll facility for 850kW worth of space starting June 1. Source already has a big UK software client lined up to take advantage of the new space.

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Categories: Datacenter