Colocation Data Center Leases Have Active Year

Colocation data center deals were on the rise in the Minneapolis/St. Paul market in 2016. The U.S. Bank/Stream data center build-to-suit with Stream, located in Chaska and announced in December, rounded out the year. Colocation deals completed at providers such as Cologix and Databank, continued to help absorb approximately 5.5. mW of existing turnkey inventory and helped to justify expansion into new space. While more national searches considered the Minneapolis market in 2016, most activity still came from local companies looking for local solutions. By end of year, some enterprise requirements continued to “explore their options” and others decided to renew in existing locations. The general consensus was local third-party service providers offer the most competitive options for outsourcing data center operations.

Future Trends:

  • More Clouds on the Horizon
  • Future Accounting Rules will affect Data Center decisions today
  • Buy vs. Lease