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CBRE Report: Boston’s Data Center Market Driven by Tech and Life Sciences
Boston’s data center market experienced significant growth in the first half of 2020, according to CBRE’s latest North American Data Center Trends report. The growth was due in part to an increased demand from technology, enterprise and life sciences companies.
Boston finished out the first half (H1) of 2020 with 77.8 megawatts (MW) of inventory, up 3.5 MW since the end of H1 2019. Vacancy rates dropped 40 basis points to 19% at the end of H1 2020, despite a 3.5 MW drop in absorption year-over-year.
“Boston’s data center market continues to be largely driven by local technology, enterprise and life science companies, which accounted for more than 75% of local demand,” said CBRE’s Rich Modliszewski, who specializes in data center and telecommunications brokerage in the Greater Boston Area. “Currently, the market has 3.8 MW under construction with staggered deliveries over the next several quarters. Additionally, there is 1 MW+ of pent-up demand projected to close in H2 2020.”
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