DATA CENTER INDUSTRY QUESTIONS - February 2018

The data center industry is entering the age of hybrid IT as users gain the ability to integrate co-location environments with direct cloud infrastructure access from providers like AWS and Microsoft Azure within a single premise. While 2017 saw record-breaking merger and acquisition activity exceeding $20 billion, 2018 continues to see strong consolidation as operators seek growth in specific markets and customer segments. Furthermore, sale-leaseback transactions are rising because enterprise users increasingly prefer the flexibility of not owning physical infrastructure, while operators gain immediate market presence with established tenants. Although edge computing is driving smaller deployments in secondary cities, the bulk of hyperscale and large enterprise demand remains concentrated in major hubs, specifically Northern Virginia, Chicago, Silicon Valley, Phoenix, and Dallas.