Surging demand from hyperscale cloud providers led to a record 303 megawatts of absorption in the seven primary U.S. Data Center markets in 2018.
Strong demand for data and technology capacity fueled the wholesale data center market in North America in 2018. There were two primary drivers of data center demand in 2018. Significant data traffic and storage: Global data center and cloud IP traffic since 2016 are forecast to triple by 2021 at a compund annual growth rate (CAGR) of 25%. With the enormous growth of data consumption- driven by big data analytics, 5G, gaming and streaming services- wholesale data centers will remain positively impacted.Evolution of hyperscale and enterprise requirements: the spread in the scale of requirements was a standout driver in 2018, as enterprise users remained active but started with lower-size requirements.