Commercial real estate owners and managers are under more pressure than ever to show creativity and uncover new sources of revenue as office occupancy continues to underperform its pre-pandemic levels. Few options are off the table, from community-oriented flex space to rooftop restaurants and party venues. Add to this mix data centers, which are increasingly seen as a potential path to office building profitability.
There is a growing need for digital infrastructure, driven by near-universal internet access, mobile phone subscriptions, smartphone-based applications and even adoption of artificial intelligence, according to recent research. While hyper scalers, over-the-top media companies and edge data centers meet the majority of today’s demand, more data space is needed across all regions. The global colocation data center market is projected to grow at a five-year compound annual growth rate (CAGR) of 11.3% from 2021-2026, while the hyperscale market is expected to grow even faster, at approximately a 20% CAGR.
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