Data center real estate is primed to boom after the pandemic forced lives online

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Data centers are primed to set growth records this year. DianaOlick explains why they were the top real estate sector of 2020 and what the outlook is as the pandemic winds down.

Data centers are primed to set growth records this year, according to a new report from commercial real estate company CBRE.

"We know there's already 500 megawatts of new build coming online now, almost 70% of which is pre-leased. And so we do believe that 2021 might be the record year, and then we'll accelerate thereafter," said Spencer Levy, senior economic advisor for CBRE. It's valuable for data centers to be bunched together. It allows for faster communication, networking effects, access to the cloud and access to cheap power.

 

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DianaOlick The main reason they’re in Northern Va. is that the terminus for the main undersea internet cables is close to Virginia Beach.

DianaOlick Come to papa

DianaOlick CIA is located there that's why all the data centers are.

DianaOlick Having the Pentagon next door also helps explain their cluster in NorthVA

DianaOlick Looks like the set of Colossus

DianaOlick It's boring to sit at home alone, looking for someone to spend time with

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