Data Center Market Analysis 2Q 2022 Recap Compares Absorption Across Three-Major Regions
DALLAS, TX – August 10, 2022 – datacenterHawk, the leading global data center real estate analysis platform, has released its 2Q 2022 Data Center Market Recap, detailing the dynamic growth in North America and Europe, along with rapid expansion in the APAC market. This follows their 1Q 2022 recap, which reported all-time highs in global data center demand across these three regions.
The datacenterHawk team relies on its proprietary standardized methodology to provide real time data that allows subscribers to discover, track and compare trends and pricing from over 35 individual markets across North America, Europe, and APAC regions. Their data and analysis are detailed in datacenterHawk’s comprehensive summary released in July 2022, which indicates the continued trend of high demand across the data center sector’s major markets.
“The data center industry finds itself in a new position at the 2022 mid-point. Both increased demand and impacts from supply challenges around the world have created an environment where both data center users and operators are aggressively working to ensure they have the runway to meet their future needs or customer demands. This has resulted in increased site acquisitions, interest in new markets, interest in new areas within current markets, and increased pricing,” comments David Liggitt, datacenterHawk’s President. “Supply growth is at heights not seen before, all while data center user requirements have grown in size and number. This opens the door to numerous opportunities for users, providers, investors and consultants in the space, making the rest of 2022 exciting to watch unfold.”
Global data center market highlights include:
North America: 2Q 2022 marks another strong period of growth in the North American market, with primary vacancy rates now averaging their lowest point ever recorded. While there are several markets with capacity sufficient to meet the demand, many are supply constrained and operators are looking at ways to grow quickly. Despite the continued growth of the major North American data center markets, challenges with power delivery and site availability are pushing some demand to other locations, giving opportunity for increased activity to areas like Salt Lake City, Richmond, and Austin. Pricing increases are expected to continue as well, as operators deal with inflation, increasing site acquisition costs, and leverage due to lack of option availability across most markets.
Europe: Enterprise and hyperscale users have remained active across Europe. The Frankfurt, London, Amsterdam, Paris and Dublin (FLAP-D) markets combined for their strongest demand period in 1Q 2022, only for 2Q 2022 growth to top that figure. Frankfurt continues to be a significant growth market. However, new opportunities are somewhat limited in several key markets due to the lack of available power infrastructure and land sites suitable for long term development. The demand for data center space will only continue to increase, creating opportunities for development in new and secondary markets.
APAC: Demand for data center space remains high across the APAC region. Many major markets have limited supply, and new markets have continued to arise, a marked trend from 1Q 2022. The geography of the region makes it difficult to have a true data center hub, and instead requires development in major cities or economic centers. While planned power remained relatively flat in Hong Kong and Singapore, it increased significantly in Sydney, which has over five times more planned power than Hong Kong and Singapore combined. Australia’s pro-data center sentiment and ability to establish data centers as “state significant development” has improved the permitting and development process, allowing the market to grow rapidly in 2Q 2022.
This real time market data can be accessed via Hawk Insight, datacenterHawk’s product featuring data center trends, activity, and pricing for more than 35 markets across North America, Europe, and Asia Pacific. datacenterHawk’s 3Q 2022 Market Analysis is expected to be released shortly after the quarter ends.
For more information, visit: https://www.datacenterhawk.com/
To read the full 2Q 2022 Data Center Market Recap, click here.
To sign up for Hawk Insight, click here.
datacenterHawk helps users see data center real estate across North America, Europe, and Asia Pacific with new clarity. Dive into supply, demand, and pricing trends instantly via their online platform or work their standardized data into your platform via API. Their team of experts ensures that all data on their platform is standardized and ready for your analysis. For more unique needs, you can engage datacenterHawk for consulting requirements. At the end of the day, datacenterHawk exists to help you make better decisions about data center real estate. Take their platform for a trial or contact them to see how they might be able to serve you.
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