Tuesday, March 13, 2012

Signs of Southern California Data Center Recovery

As capital becomes more readily available to the colocation market, the need for speed and more capacity will likely play-out with emphasis. In fact, data center advisory firm, Wired Real Estate Group, Inc. completed the placement of another national colocation company in a 43,000 square foot California data center, as they continue to roll after a 2011 that went down with over 100% growth.

The Los Angeles site has 5 MW of existing utility service, with expectations that the site will ultimately garner over $20 million in investment as a Tier III colocation facility over its useful life. California's colocation market is considered one of the largest in the world, and has seen significant data center finance activity over the last several years. Colocation and property firms deploying new capital in the region include Latisys, Alchemy Communications, Digital Realty Trust, Equinix, Vantage Data Centers, DuPont Fabros, Scale Matrix, American Internet Services, Fiber Depot, RedIT and others.

Wired Real Estate CEO, Everett Thompson, anticipates further consolidation and renewed investment in the market , with 2012 producing accelerated growth opportunities for the firm, as well as other public and privately held colocation firms.  The firm has completed over 200 engagements in the last 36 months with leading enterprises, including numerous members of the Fortune 200. Nationally, the firm represents nearly 1 M square feet of colocation and data centers

For more information about WiredRE and its data center research and advisory services on data center design, planning, brokerage and finance visit www.wiredre.com.

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