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North Texas Data Center Construction Outpaces Demand

New research by CBRE shows that supply has edged ahead of demand for data centers in North Texas. The brokerage firm’s H1 2019 data center report reveals roughly 28% of data center capacity was available in the Dallas-Fort Worth market.

CBRE researchers wrote in the report: “The DFW wholesale colocation market is as competitive as it has ever been, with 17 facilities in the Metroplex having at least one megawatt of vacant capacity available. For tenants, this is great news. DFW offers many options, and users are leveraging competitive supply to achieve attractive pricing and deal terms.”

The DFW region ranked among the top three U.S. data center markets the last three years, according to CBRE. Currently, there is 34.6 megawatts under construction in DFW, with a robust long-term construction pipeline exceeding more than 400 megawatts. Construction activity includes facilities for QTS Data Centers, Equinix and Stream Data Centers, along with Google’s $600-million data center that recently got underway south of Dallas in Midlothian.

CBRE also noted investor interest has grown in the product type. Researchers wrote, “As investor interest has picked up globally in the data center asset class, Dallas remains a target market for acquisitions via sale leaseback, where users sell owned data centers, convert into a lease structure and continue to operate the facility.”

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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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