4Q 2019 North America & Europe data center market recap

02/12/2020

4Q 2019 was an active time period for both the North American and European data center markets. Check out the largest trends we identified based upon our exclusive data and analysis:

  1. Major markets continue to grow due to demand and large transactions
  2. Atlanta finishes 2019 with a strong year of growth
  3. Cloud providers generating demand in Los Angeles
  4. European market maturity a focus in 2020


Major markets grow due to healthy demand and large transactions

The supply in Atlanta, Chicago, Dallas, Los Angeles, Northern California, Northern Virginia, and Phoenix grew significantly in 4Q19. Absorption in these markets was strong as well, primarily from users with large data center needs. The top 10 US markets accounted for approximately 70 MW of absorption in 4Q 2019.

Large demand was distributed evenly throughout these top data center markets, compared to other time periods where most of the absorption took place in Northern Virginia.


Atlanta finishes 2019 with a strong year of growth

The demand in Atlanta increased significantly in 2019, and the market many think will be a strong area for future East coast growth posted a record quarter. Much of the demand is attributed to pre-leasing executed by QTS and Switch, who are both under construction with data center campuses in the area.


Cloud providers generating demand in Los Angeles

Data center demand increased significantly in Los Angeles during the second half of 2019.

Cloud provider maturity was one of the key demand drivers leading to a record absorption year for the Los Angeles data center market. The area also attracts companies with an APAC presence because of the connectivity options the city provides to the overseas region.


European market maturity a focus in 2020

A significant amount of development capital will be placed in Europe in 2020, as large cloud service providers and other enterprise users look to mature their footprints in these markets.

Data center strategy in these areas continues to revolve around issues related to data privacy, regulation, and power challenges, and data center operators are focused on providing solutions providing both a short and long term path to growth in these areas.


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