Over the last five years, two dynamics have propelled growth in the data center industry: businesses outsourcing their IT infrastructure needs and the popularization of cloud computing. In response to these trends, the North American data center market is expected to see its revenue grow by 32 percent from 2014 to 2016 to $14.8 billion. So what does all this mean?
- IT spending growth is slower than expected due to increased price competition and the adoption of lower cost, typically cloud-based solutions.
- In light of some recent high profile data breaches, IT security has gained priority for companies, especially those in healthcare, banking and retail.
- Today’s third-party data center landscape is seeing consolidation among large players and new entrants joining the industry.
- The data center market is seeing very competitive pricing due to the large number of options available to tenants in today’s market. With the exception of Houston and Toronto, most of the data center markets are tenant-favorable and will remain so through late 2015.
These trends and others are discussed in more detail in our full report. Visit the 2014 North America Data Centers landing page for more information.
Post on LinkedIn: The window of opportunity is open for tenants seeking data center space and solutions. New JLL North America Data Center Outlook shows an increase in demand and a tenant favorable market. http://bit.ly/1zG6xEh
Tweet this: What’s driving data center revenue? IT outsourcing and the need for cloud computing says #JLLResearch. http://bit.ly/1zG6xEh