Data center construction increases thanks to the cloud

A new report from a real estate firm that specializes in data center construction and leasing says data center construction in North America is up 43 percent over the same period in 2016, and industry consolidation has driven $10 billion in mergers and acquisitions (M&A) so far. 

Jones Lang LaSalle just published its report on the North America data center market, highlighting trends such as consolidation, enterprise hybrid cloud, security, and high-performance computing.

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While construction continues at a record clip, the report also found that absorption of data center space available for lease has returned to normal levels after record leasing in 2016. So many of the cloud providers are still digesting the capacity they picked up last year.

“While M&A activity is surging, data center leasing has quietly returned to normal in the U.S.,” Bo Bond, managing director and data center solutions co-lead at JLL, said in a statement. “The acquisition of large amounts of server space in the U.S. by cloud companies continues, but it is no longer as frenetic as it was in 2016. Data center users are now turning their attention toward filling out their global data center footprint and making technology investments to keep them ahead in a rapidly changing industry.” 

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