Data Center market in NoVa expected to exceed last year’s demand by more than 30 percent

JLL’s (NYSE: JLL)new report on the national market for data center leasing shows Northern Virginia retaining its star power as cloud providers, enterprise and social media users continues to make it the largest global market for data centers in 2015and 2016. The recent installation of new subsea fiber cables linking the Virginia to Europe, Africa and South America make it an even more appealing hub for tech customers and 2016 is already on pace to exceed last year’s historic demand by more than 30 percent.

“Northern Virginia has become the dominant location for data centers given its strategic advantages over other national and international markets. It offers affordable and highly reliable power, is neutral to natural hazards, has robust fiber infrastructure that provides low latency to major metropolitan cities and is convenient to centers of government and monetary policy,” said Allen Tucker, Managing Director of the Mid-Atlantic Data Center Solutions practice at JLL. “All of these factor make it very attractive for companies looking for wholesale data center and cloud capacity.”

Demand for wholesale data centers and cloud technologies, and the data centers to support it,are increasing exponentially as the internet economy fosters an accelerated rate of 3^rd party data center providers and cloud adoption. The cloud-managed service sector is expected to double in the next five years. Providers are interested in bringing data storage and compute power closer to consumers to reduce latency time, increase reliability and improve consumers online experience.

“It is no mistake that the most vibrant global market for data center, Northern Virginia, encompasses the world’s largest bank, the Federal Reserve, and the United States Government, which is the largest content generator in the world. Such quantities of information require high-volume cloud storage, while proximity increases the speed and dependability of access to that information,” explained Tucker. “Additionally, the D.C. metro area has the highest per capita income in the United States, driving a robust consumer market that is increasingly connected to online shopping, video and movie streaming with demands for very fast, reliable internet service to process a high volume of daily transactions.”

Northern Virginia Data Center Market Stats:

The report provides an in-depth market analysis for data centers in 14 local US markets and three in Canada discussing supply and demand and assessing local outlook for users and providers. Covered markets are: Atlanta, Austin & San Antonio, Boston, Chicago, Dallas, Denver & Colorado Springs, Houston, Los Angeles, New Jersey, New York City, Northern Virginia, Pacific Northwest, Phoenix, San Francisco Bay Area, Greater Montréal, Greater Toronto, and Western Canada.

It also explores other change drivers in the global data center market including rapidly evolving regulations of data sovereignty.These laws, requiring that data be housed within the same country from which it is accessed, are influencing data center location decisions, and acting as market-makers in certain countries. It's a smart move for these nations, which can achieve a double-benefit of helping protect data, as well as essentially requiring new investment in their economies. As a result, the industry’s biggest players are rapidly expanding internationally to meet growing demand and help users remain compliant.

How Northern Virginia Compares to other major Data Center markets in the United States:

Climate change is also becoming a clear influence on strategy, as the data center industry increasingly evaluates performance from socially responsible, environmental, and financial perspectives.Providers are dynamically implementing cooling and powering strategies to decrease consumption and are increasingly looking for access to renewable energy sources and water as major factors in choosing data center locations.

Wholesale data center providers who can keep up with these demands are well-positioned to take advantage of tremendous growth opportunities in this market in coming years. More flexible build-outs allow diverse users to enter a market once dominated by only the largest players. Increasing efficiency using sophisticated analytics tools to improve usage planning is causing demand to spread out across primary and secondary markets and increasing returns on investment. With so much rapid evolution, everyone in the market is taking a fresh look at location decisions, rising to the challenge of a changing climate and leveraging new technologies to better capture the market opportunity.

Access the full report at: http://www.us.jll.com/united-states/en-us/Research/US-North-America-Data-Center-Outlook-2016-JLL.PDF?6e590fc7-e054-49a1-9837-5ec8dbfeafc6

About JLL Data Center Solutions

JLL’s global Data Center Solutions team has delivered customized data center services and strategies to many of the world’s largest corporations. With the expertise of having managed 1110 megawatts of critical facilities transactions, our team assists companies with total site selection (from greenfield to colocation to cloud) utilizing best in class due diligence, in-depth TCO analysis and comparisons, risk and infrastructure assessments, project development services, migration consulting, contract and SLA negotiations, and budget preparations. Our Capital Markets group has deep experience in the data center industry from investment property sales to debt financing and our critical facilities management team oversees 92 million square feet of critical environments. We understand the technical elements that are crucial to your facility in terms of power, cooling, fiber, latency, utilities, redundancy, taxes, construction, public incentives and security. JLL’s Data Center Solutions team will help you determine the best IT and data center strategy to meet your business objectives.

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. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $59.1 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.