Data center construction remains healthy, but oversupply a concern

Major tech firms and wholesale operators continue to expand their data center footprint

May 01, 2013 |

Facebook, Amazon, Microsoft, and Google are among the major tech companies investing heavily to build state-of-the-art data centers. The flurry of new construction activity, combined with news from Avison Young about the strong performance many wholesale data center operators are seeing, is a positive sign for the data center construction sector.

But industry experts are raising concern over a possible oversupply of wholesale space in the market, with some 1.9 million sf of available space across the U.S., according to CoStar Group's Randyl Drummer.

Read Drummer's report: "Robust Market for Data Centers Healthy Now, But Investors Worry About Oversupply"

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