Operating costs for data center tenants have jumped dramatically this year as the industry’s power problems grow.
Data center rents and power costs have surged since last year in many of the most important hubs, according to a CBRE report. Average rents in the four largest North American markets increased 20% year-over-year, CBRE found.
These rising costs have been felt most acutely in Northern Virginia, the world’s largest data center market, where first-quarter colocation rents soared 41.6% and power prices jumped 20.8% year-over-year.
Rents in Chicago climbed 33%, while rents in Dallas and Silicon Valley also saw marked increases.
At the root of these higher costs for tenants is the industry’s ballooning electricity needs, which are straining regional power grids and creating a bottleneck that is slowing the development of new data centers amid a record wave of demand
Click here to read the rest of the article written by Dan Rabb over at Bisnow
