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News release

WASHINGTON, DC

Northern Virginia at the Center of Growing IT Infrastructure, Cloud Computing Market With Close to One Million SF of Development Underway and Planned

JLL Releases North American Data Center Outlook for 2014-2015


WASHINGTON, NOVEMBER 17, 2014 – Northern Virginia (“Data Center Alley”) is one of the world’s most important data center markets globally, offering 2.4 million square feet of data center space with 498.3 megawatts of available power, according to research cited in JLL's Data Center Outlook for 2014. Offering the industry's best latency, a measure of network traffic speed, Northern Virginia has become the country's market leader for enterprise users and cloud computing.

Worldwide IT spending will top $3.75 trillion in 2014, and growth is expected to accelerate in 2015 as the next phase of personal cloud movement infiltrates consumer-focused IT.

Fueled by the outsourcing of IT infrastructure by businesses and the popularization of cloud computing, the growth in this sector is expected to drive data center revenue to $14.8 billion by 2016, a 32 percent increase over 2014, according to JLL.

"Northern Virginia provides enterprise users a strategic advantage over other data center markets: low cost electricity, customer density, enormous bandwidth with low latency, speed to market permitting, geographic neutrality to natural hazards and low total cost of ownership," said Allen Tucker, Managing Director in JLL's Tysons, VA office. "Power costs in Loudoun County remain steady and very cost competitive compared to other Tier 1 MSAs that enterprise users naturally consider for their technology deployment.

“Not to mention the county has focused on developing the best in class infrastructure to make this industry its primary economic engine for both data center operators and enterprise users,” added Tucker. “Further, Northern Virginia has exploded as the Silicon Valley of the east with its marquee list of companies establishing a large footprint here for data centers."

While many markets have seen data center providers pull-back on construction projects and offer discounts and concessions to fill available vacancies, Northern Virginia continues to see new operators entering the market to develop additional product.
More than 107,000 square feet of data center development is underway in Northern Virginia, and an additional 882,150 square feet is planned for the market. The competition to fill this space will force providers to be aggressive with their pricing and concessions, which will drive deal velocity, according to JLL's report.

"This area is seeing increased demand across all industries," added Tucker. "Proximity to the federal government, high quality technology workforce, new 2.0 dot-com enterprises, an affluent population base, growing entrepreneurial community and excellent institutions of higher learning all support the growing demand for market share in Northern Virginia."

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $53.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.