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Demand Spikes for Region’s Data Centers
The New York tri-state data center market posted nearly five megawatts of net absorption in the second half of 2017. That almost matched the demand levels the market saw in all of 2016, according to CBRE. Data center capacity and demand are generally measured in MW rather than square feet.
The firm sees a shift in demand from primarily wholesale to a retail/wholesale-oriented market, as smaller colocation requirements increase. Expectations are for continued momentum in this area, while providers with hybrid and flexible offerings will continue to capture the bulk of the activity in the region’s data center market.
“Due to our proximity to the world’s financial markets, population density and accelerating e-commerce industries, the tri-state region remains one of the most competitive markets in the Northeastern United States,” said Jonathan Meisel, senior vice president in CBRE’s East Brunswick, NJ office.
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