Variability that exists from market to market
"As the data center industry expands, IT and real estate executives are grappling with complex site selection decisions, including whether to lease or own a facility. For occupiers seeking to preserve capital or lease a data center, the selection process needs to carefully consider the primary cost variables of rent, power and taxes, and recognize the variability that exists from market to market," said Pat Lynch, Managing Director, Data Center Solutions, CBRE. "The site selection process for an owned data center will hinge more on the relative costs of power, real and personal property taxes, sales taxes, available incentives, and construction costs."
The CBRE report, written by Jessica Ostermick, Director of Research and Analysis, CBRE, analyzed a typical 1-megawatt (MW), or 1,000-kilowatt (kW), data center lease over a seven-year term across 23 key markets in the U.S.
Atlanta, Colorado Springs, Northern Virginia, Portland and Seattle provide the most cost-effective options for leasing data center space, based on total project costs. At the opposite end of the spectrum, Boston, Des Moines, Kansas City, Northern Florida and Omaha had the highest total project costs. Colocation lease rates per kW are heavily driven by both market competitiveness and maturity. Accordingly, lease rates in a less mature and competitive market like Des Moines are higher than in a more competitive and mature market like Silicon Valley.
Wholesale data center inventory is steadily increasing across primary and secondary markets in the U.S. to keep up with the growing demand. As of Q2 2014, total inventory in primary markets reached 1,140.9 MW, with another 107.3 MW under construction, according to CBRE. Between Q2 2013 and Q2 2014, primary market inventory measured in MW increased 31.3 percent. - See more at: http://www.worldpropertyjournal.com/real-estate-news/united-states/atlanta-real-estate-news/data-center-report-leasing-a-data-center-us-market-cost-comparison-cbre-pat-lynch-data-center-lease-rates-how-to-pick-a-data-center-jessica-ostermick-8659.php#sthash.SZwew51P.dpuf