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Data Center Activity Looks Positive for 2021
While overall activity was down for 2020 for the second largest U.S. data center market, enterprise demand continued to drive absorption through fourth quarter 2020.
DFW net absorption for 2020 was 34.43 megawatts. In its last report, CBRE iterated that the Dallas colocation market normally achieves 40-plus megawatts per year of absorption but was unlikely due to a slow second quarter caused by COVID-19.
The outlook for the 2021 Dallas data center market is positive, with several transactions expected to close in the first half of 2021. Moreover, the migration of businesses from other parts other country will create continued growth.
Continued deep market competition will keep colocation pricing at some of the lowest rates in the country until supply tightens enough to limit the number of colocation service providers competing for every transaction.
For comments, questions or concerns, please contact Lisa Brown
