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Diving Into The Golden Age of Data Centers With New Green Street Outlook

As of April 22, 2024 Green Street just expanded our Market Data offering to include the Data Center sector, covering the top 14 US markets and top 9 European markets. With what has been called the Golden Age of Data Centers, we are looking ahead of the market to provide clients with coverage on valuable data points and insights on the booming sector.

If you want to learn more about this new offering you can keep reading or watch the video below to see our Head of Global Data Centers, David Guarino, speak about the product himself.

Projections call for a 10% per annum expansion in industry-wide inventory over the next five years. Responding to this promising future, we are offering new data to make more insightful decisions in your investments.

Green Street’s new Global Data Centers Outlook provides expanded coverage and market-level insights for the sector. Examples of some of the report insights include:

  1. Overview and Sector 101 for Data Centers
  2. Key Takeaways for Trending Insights
  3. Nominal Cap Rate Time Series 
  4. Commercial Property Price Indices (CPPI)
  5. Current Market IRRs and Build Ups
  6. The Primary Supply Landscape for the Data Center Sector

Leveraging these differentiated insights, Green Street will help bring more color to the Data Center opportunity in the years ahead.

A few factors to consider on the surface: First, occupancy is already sitting at record high levels across the globe. This means that the need for new construction is necessary. Secondly, it’s important to note that data centers grow in a somewhat “network effect” model, in which the more infrastructure is built, the more fibers/network is built, the more data can be housed, and so the more data centers are needed. And so, the circle continues.

One can assume the promise this cycle can project, but for more insights you can request the report to dive into which markets are expected to show the strongest M-RevPAF growth (a Green Street proprietary metric combining rent and occupancy) in accordance with these projections. The gold rush of Data Centers does indeed seem to be built on a continuous circle of alchemy.

Data Centers Image Describing Network Effect of Data Center Expansion

This is barely scratching the surface on the analysis from Green Street’s inaugural outlook report for the Data Center sector. With more research to come, it’s a matter of who will use this data to get ahead and stay ahead. With a gold rush already underway, and this seemingly self-rotating demand-supply cycle at its peak, who will strike first and who will find the golden vein? Green Street has the golden eye for quality data you don’t want to miss.

With a new booming industry considered "the real estate that supports the digital age," the Data Center sector is certainly one to examine closely for certain investment strategies. As is the case with any investment decision, the more you are empowered with data the sturdier your actional will stand. And Green Street is waiting to maximize and optimize your data access, timely insights, and impactful commercial real estate news.

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