CBRE released its 2021 U.S. Real Estate Market Outlook. The section on data centers starts on page 36. Some of the highlights include:
- With 373.6 MW of development under construction across primary U.S. data center markets, total data center inventory is forecast to grow by 13.8% in 2021.
- Continued adoption of hybrid IT and cloud services, the growth of AI technologies, and an ability to support a dispersed workforce will drive industry growth over the next several years.
- Primary U.S. data center markets continue to benefit from their proximity to major metros, existing facility infrastructure, and established network connectivity.
- Smaller, secondary markets that couple clean, low-cost energy; advantageous tax incentives; affordable land prices; and network connectivity are poised to see the most growth.
- Hyperscale activity likely will level out in 2021 as demand drivers that spiked in 2020 begin to plateau, including enterprise clients leveraging hybrid IT solutions to accommodate remote working mandates. This trend likely will continue, albeit at a slower pace than in 2020.
- As data center technology evolves and allows for more power-dense facilities, many providers are looking to expand in markets that offer affordable clean energy. Montreal, Canada, and Hillsboro and Portland, Oregon, provide hydroelectric power at rates well below those in other markets.