Global data center outlook – year end 2018
Strong fundamentals in 2018 provided us insight into what to expect in 2019 in North America and across the globe.
Insatiable demand for data center space remained robust across regions throughout the year. Multi-cloud adoption continues to drive demand across markets and will be compounded with the advent of 5G network connectivity. Providers are strategizing their offerings to meet the growing need for long-term flexibility, while providing the space and power needed from large users
Download the latest report from our Data Center Research team for in-depth market knowledge and a true pulse on the market. We discuss the current state of the industry, absorption, under construction news, local market activity, highlight mergers and acquisitions, and provide our outlook to year-end 2018.
Here are three things we saw in 2018:
Absorption (MW) by market, YE 2018
Markets in the United States and across the globe turned in a strong finish for 2018 with 775.0 MW of absorption.
Under construction (MW) by market, YE 2018
As of year-end 2018, there are currently 549.7 MW under construction across global markets, with North America accounting for 265.7 MW of that figure.
Cloud as a percentage of absorption
Cloud demand accelerated by year-end 2018 with markets showing increased activity across the globe.
What we expect in 2019:
Multi-cloud adoption and 5G network will reshape the industry
The robust growth of multi-cloud adoption and advent of 5G connectivity will demand new data center infrastructure and capabilities in new locations across the globe
Blockchain is much more than just cryptocurrency
The underlying technology of cryptocurrency is being adopted by multi-national corporations to improve transaction and business processes. This is creating an influx of demand for power capacity and its application to handle a variety of tasks is projected to grow over the next three years.
Merger & Acquisition activity remains robust despite slight decline in volume
Despite an increase in the number of deals completed in 2018, total volume dipped. We expect corporations to consider third-party data center operators to minimize costs in 2019.