February 9, 2021Commercial Observer
E-Commerce, Streaming, Cloud Migration, and Government Incentives Have Driven the Initial Jump in Leasing and Build-Outs
While Northern Virginia Had Long Been One of the Country’s Top Data Center Markets, Several Large Transactions in 2016, Led by Major Microsoft and Oracle Leases, Catapulted the Area to the Top Spot in the U.S., Which It Has Claimed Every Year Since.
Kevin Imboden, senior research manager of data center insights for Cushman & Wakefield, said recent data show that 2020 set a record for data center absorption in NoVA with approximately 390 megawatts absorbed, doubling any other year in history. Back in 2016, it was under 200 megawatts.
Jamie Jelinek, first vice president at CBRE and an active member within the firm’s Data Center Solutions group, characterizes the rise as “explosive,” with its magnitude driven primarily by large tenants with footprints over 10 megawatts (MW), frequently alluded to as hyperscale tenants.
“The hyperscale activity in Northern Virginia is unlike any other market in the world,” Jelinek said. “As a result, market absorption in Northern Virginia over the past few years has exceeded that of the next six largest U.S. markets combined during the same timeframe.”