Data centers seem like a pretty safe financial bet for commercial real estate investors.
As most major companies in the country, despite what industry they are in, become tech heavy, the need for data storage is only going to increase. Many offices and industrial buildings aren’t suitable for large numbers of servers, which have significant cooling and power needs that data centers provide.
This need has made the data-center especially attractive and valued, as illustrated in Digital Realty Trust’s $7.6-billion acquisition of DuPont Fabros Technology for 12 data centers in the Chicago area, Northern Virginia and the Silicon Valley. That’s quite a price tag for 12 assets, and it boosts Digital’s cloud-data-storage capabilities.
Just after that deal, CommScope announced the formation of the Multi-Tenant Data Center (MTDC) Alliance, which has partners in 88 countries around the globe, and is a resource for the firms that do business in building and maintaining those facilities. The move comes as more service providers are selling off their data centers to third-party operators.