DFW data center inventory increased 43% since 2014, driven by demand from large corporate users
Supply of Data Center space in Dallas-Fort Worth has increased 43% since 2014, adding 156MW and almost 1 million square feet of space.
March 19, 2019
- Supply of Data Center space in Dallas-Fort Worth has increased 43% since 2014, adding 156MW and almost 1 million square feet of space. At the end of 2018, an additional 35MW was under construction and 188MW were planned, with providers such as Equinix, Skybox, Stream and Edgecore with land positions in the design phase.
- Demand remains steady, with net absorption averaging between 8-11% of inventory each year. Vacancy has increased slightly over the past few years to 15% as the market added over 110MW of inventory in the last 2 years.
- Demand continues to be made up of primarily transactions by enterprise / large corporate users averaging 250 kW -2.5 MWs each. Another wave of enterprises are shifting their workload off on-campus owned and operated data centers to multi-tenant data center facilities. Cloud providers, Technology companies, and Banking & Financial Services are driving demand.
- Because of increased construction, the DFW market remains favorable for users, with providers offering aggressive rental rates and existing providers receptive to restructuring contracts.
- Importantly, this demand looks like it will continue given DFW’s favorable data center environment – and the continued growth in corporate users, who all have data center needs that can be filled regionally.
Source: JLL Research