[email protected] (Courtesy of Hillwood)

Commercial Real Estate

DFW Is the Second Highest Absorbing Data Center Market in the U.S.

Take that, Chicago.

Northern Virginia still reigns as the data center king with record absorption, but Dallas-Fort Worth has risen to the second place spot with 22 megawatts in the first half of 2017, according to CBRE Research.

That 22 MW of absorption accounts for one quarter of all absorption in the country’s top seven data center markets—Atlanta, DFW, Chicago, New York, Northern Virginia, Phoenix, and Silicon Valley—in the first half of 2017. Both Northern Virginia and Chicago usually lead the nation in positive data center fundamentals.

Ten data centers with 47 megawatts of power are under construction in DFW and are being built on a speculative basis, demonstrating leasing demand. Northern Virginia’s 119 MW pipeline still dwarfs North Texas’. Chicago has 41 MW under construction and Silicon Valley has 30 MW.

Adding to the pipeline, T5 Data Centers and Hillwood announced Monday that the joint venture will develop a data center campus within AllianceTexas. The campus, called [email protected], will have the capability to deliver more than 400 MW at build-out. The more-than-350-acre data center campus is spread over multiple sites within the 18,000-acre development. IPI Partners is backing the data center campus.