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Dallas and the Data Center Boom

Dallas and the Data Center Boom

JULY 27, 2015

I recently attended The Dallas Data Center Extravaganza at the Infomart Data Center in Dallas.  More than 220 data center providers, owners, builders, designers and service providers were in attendance to hear more about the driving demand for data centers.

A panel on “The Future of Data Centers” included representatives from Stream Data Center, Infomart Data Centers, Newmark Grubb Knight Frank, and QTS, who all agreed that data center capacity will continue to grow, especially in Dallas.   Bryan Marsh of Digital Realty noted that less than 5 years ago, Digital Realty was basically the only wholesale data center provider in the market.  Now, there are several providers which are forcing competitive rent rates for data center tenants and enhanced skillsets improved operations.

A second panel, which included speakers from Compass Datacenters, Skybox Datacenters, and Corgan discussing “Development Update,” reiterated that the Dallas data center market will continue to expand.  One interesting quote from Chris Curtis of Compass Datacenters was “the speed of light only travels so fast.”  Curtis was describing why secondary data center markets are also thriving; they are needed to ensure data center horsepower is closer to client locations.

Several panelists that don’t currently have data center operations in Dallas each indicated they will have properties in the market in the near future.  This was more proof that the data center business in Dallas will continue to grow.

As someone who has been working in the Dallas data center arena for the past 5 years, I have to agree with the observations presented by the panelists.  Dallas is quickly becoming “an absolute gold mine” for North Texas cities and surrounding construction projects.  With Infomart making $40 million in upgrades to their already state-of-the-art building, CyrusOne expanding their facility by more than 60,000 square feet, and T5 and Lincoln Property developing a “Purpose-Built” data center, the data center market has quickly taken on a new look in Dallas. These data centers offer many opportunities for the cities that are home to these massive projects, including large sums of tax revenue and numerous job prospects.



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