A worldwide shortage of available power is hindering the growth of the global data center market, according to a new report from CBRE. Data center operators across North America, Europe, Latin America and Asia-Pacific are prioritizing sourcing enough power in order to keep up with demand.
Despite strong near-term market fundamentals, power supply constraints could potentially limit or delay development in markets such as Frankfurt, Tokyo and Silicon Valley. However this has led to an increase in demand for emerging markets where there is sufficient availability of electricity; including Charlotte NC., Johannesburg and Mumbai.
Pat Lynch Executive Managing Director for CBRE’s Data Centers Solution commented “Strong demand for data centers is driving the increase in supply; however we’re seeing low vacancy rates globally – particularly within North American markets which have reached their lowest rate since 2010.” He went on further to state that “We anticipate constraints on capacity and development will ease over time but it won’t be completely eliminated as an issue within this industry”.
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