Largest Data Center Leases of 2011
Social media and service providers were the biggest adopters of wholesale data center space in 2011, according to data in a year-end roundup from Jim Kerrigan at the Grubb & Ellis National Data Center Practice. Jim’s list of the year’s top 10 wholesale space transactions highlighted two key trends: the ongoing appetite for data center space in Silicon Valley, and the surge in leasing by service providers in the suburban Chicago market.
The top 10 deals reflect 25 megawatts of leasing in Santa Clara, Calif., and almost 14 megawatts of space leased in Elk Grove Village, Ill., a suburb of Chicago. Only two deals outside of those markets made the list: Twitter’s 8 megawatt lease in Atlanta, and a 2.275 megawatt deal by Salesforce.com in Ashburn, Va.
Kerrigan also noted that it’s getting cheaper to develop wholesale data center space. “Wholesale speculative construction costs are down between 15-20 percent due to economies of scale and off-site modular construction,” he writes.
The roundup also provides data on the largest build-to-suit projects this year, and the largest available blocks of wholesale space. Check out the full writeup at the Grubb & Ellis data center blog.