Thanks to funding opportunities through debt markets, construction and development of new data center space, which had come to a halt, is now starting to move once again. Equinix and Terremark, two industry players well-known for planning and building data centers, have recently announced debt financing, a sure sign that the pace beginning to pick up for new construction.
Companies are choosing to build new data centers, rather than to lease existing locations, because space availability is nearing an all time low. According to Grubb and Ellis, a national real-estate group quoted at DataCenterKnowledge.com, large data center tenants are competing for a scant number of available facilities able to accommodate their needs. For those requiring more than seven megawatts of power and 50,000 square feet of contiguous space, Grubb and Ellis was able to locate only six options within the U.S.
Rather than wish and hope for the right space to come along, companies are once again garnering financing, purchasing land tracts and breaking ground on new data center facilities and expanding existing locations. Here are a few such projects that are in the works.
CyrusOne, a high-density colocation specialist, is planning to build a new 94,000 square foot data center in West Houston, with the option to build another 100,000 square foot facility on adjacent property. This new growth will give CyrusOne 480,000 square feet of data center space in seven facilities throughout Texas.
Equinix, Inc. will expand its colocation footprint in Zurich, Switzerland by building a new data center, its fourth in the area. The facility will add 12,920 square feet of high-density data center space.
Cisco Systems has plans to build a 140,000 square foot data center in suburban Dallas, TX. The new $184 million facility could eventually be expanded to 350,000 square feet.
Yahoo will construct a $150 million data center in Lockport, NY. The project will begin in August starting with the building of a 190,000 square foot server farm.
Federal Express is expanding their Colorado Springs data center. The company is converting a 35,838 square foot, unfinished second floor into technical space and also adding a 24,000 square foot annex.