Also: How Pandemic Fueled Data Center Growth//How Biden Energy Plan Will Impact U.S. Business
Site & Facility Planning
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Thursday, May 26th, 2022
The Need for and Challenges of New Data Center Construction

With employees working remotely and school being held virtually during the pandemic — not to mention the surge in online shopping and entertainment — the growth in data center facilities accelerated over the last year. The global data center market size was valued at $215.8 billion in 2021 and is estimated to reach $288.3 billion by 2027, growing at a CAGR of 4.95 percent over this period.

Consequently, data center space in major markets is severely limited. For example, popular markets like Northern Virginia and Silicon Valley have low vacancy rates of 5.1 percent and 1.6 percent, respectively. Another challenge for new data center developments is power constraints. The lack of land and power availability has caused some data center migration from major cities to select suburban locations throughout the U.S.

Additionally, with the increasing focus on sustainability, data centers are developing ways to measure their environmental, social, and governance (ESG) impact and activities, especially as related to a reduction in water consumption as well as the use of renewable energy. New guidelines handed down from the federal government call for a net-zero emissions building portfolio by 2045, including a 50 percent reduction in emissions by 2032. In fact, Google plans to use 100 percent carbon-free energy in its data centers by 2030. This will also help to reduce water usage as it relates to electricity generation from fossil fuels.

Pat Lynch, Executive Managing Director, Data Center Solutions Group (DCSG), CBRE Josh Ruttner, Senior Research Analyst, Data Center Solutions, CBRE
A lack of space and developable land as well as power constraints will continue to drive data center site selection, with sustainability considerations and emerging technologies becoming increasingly important factors. Read More.
Dave Fanning, Executive Managing Director, Cushman & Wakefield
With employees working remotely, school being held virtually, and everyone being entertained via the Internet during the COVID-19 crisis, growth of these mission-critical facilities accelerated and will continue to do so. Read More.
Mark Crawford, Staff Editor, Area Development
With the federal government’s commitment to sustainable energy, businesses must act now to not only meet the new guidelines but also to satisfy customers and investors alike. Read More.

GSK worked with VEDP’s Virginia Talent Accelerator Program, a workforce initiative that offers world-class training & recruitment solutions at no cost to the company, to quickly attract & onboard high-quality employees for its Richmond location.

More on Data Centers
Courtney Dunbar, Site Selection & Economic Development Leader, Burns & McDonnell Robert Bonar, Mission-Critical & Data Center Development Leader, Burns & McDonnell
Although the attributes for data center development continue to evolve, environmental and zoning issues; transportation, telecom, and power needs; and available labor are still important considerations. Read More.
Michael Rechtin, Partner, Data Center Services , Seyfarth
With technology infiltrating almost all aspects of our lives, more and more data needs to be processed and stored. Read More.
John Dettleff, Senior Managing Director, Brokerage, JLL
The industrial real estate sector is experiencing a complete transformation brought about by changes in the retail sector, warehouse design, and supply chains. Read More.
Kristin Mueller, COO, JLL Property Management
As they realize the impact the built world has on the environment, companies are increasingly transitioning to cleaner, greener facilities and operations. Read More.
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