Data Center Market Recap Analyzes Absorption in North America, Europe, APAC Region
datacenterHawk, the leading global data center real estate analysis platform, has released its 3Q 2022 Data Center Market Recap, analyzing the ongoing market trends and challenges in the North American, European, and Asia-Pacific (APAC) markets. This follows their 2Q 2022 recap, which reported dynamic data center growth in the North American and European markets, and rapid expansion in the APAC region.
The datacenterHawk team relies on its proprietary standardized methodology to provide real time data that allows subscribers to discover, track and compare trends and pricing from over 35 individual markets across North America, Europe, and APAC regions. Their data and analysis are detailed in datacenterHawk’s comprehensive summary, which details the current trends and challenges across the data center sector’s major markets.
“The trends we observed in 2Q 2022 have continued to unfold, paving the way for interest and operations in some new markets. While demand remains high across the industry, we’re seeing some larger data center markets across the world facing unique challenges to deliver the power needed to accommodate these requirements,” comments David Liggitt, datacenterHawk’s President. “As we reach the end of 2022 and move into 2023, how data center users, operators, and other stakeholders across industry tackle these challenges will be worth paying attention to.”
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datacenterHawk releases 3Q 2022 Market Analysis, analyzing the #datacenter industry demand, trends and supply challenges in the #NorthAmerican, #European, and #Asia-Pacific markets.
Global data center market highlights include:
North America: With some limitations mainly concerning power supply arising in major markets, users have become open to markets where existing power is available, rather than waiting on availability in their typical markets. As a result, demand in certain regions is spreading to markets that had not previously been recipients of hyperscale requirements. Notably this quarter, Dallas leapfrogged Northern California as the 2nd largest North American market. Looking forward to the remainder of 2022 and beginning of 2023, both the US and Canada will continue to experience high demand from enterprise and hyperscale users, paving the way for potential further opportunities in emerging markets.
Europe: Data center demand continued to trend at high levels across Europe, both from hyperscale and enterprise users. Although absorption declined in some of the larger European markets, it increased in areas like Amsterdam, Dublin, and Paris. Among the challenges facing the European market material shortages, energy constraints, and currency values that are causing both pricing, and operating costs to rise upward, as costs of operating continue to rise. The ongoing conflict in Ukraine has created some material concerns for the European market, and countries are striving to find ways to relieve their energy sources and halt inflation. While this generates some volatility in the short term, it also forces necessary efficiency adaptations that will have long-term benefits to the European data center industry as a whole.
APAC: The APAC region is viewed as an area of ample potential, and investment groups are actively pursuing ways to establish a foothold in the region’s data center industry. In 2022, over 10 major data center investments and funding events have occurred in Singapore, Hong Kong, and Sydney, not including major acquisitions of portfolios and properties by data center providers. Australia in particular has continued to emerge as an area with immense opportunity, as the government’s pro-data center stance has attracted development across the country, anchored by escalated demand in Sydney. With the limited supply of these traditionally popular markets, activity is also high in the rest of APAC, with major funding taking place for projects in Japan, South Korea and other emerging markets.
This real time market data can be accessed via Hawk Insight, datacenterHawk’s product featuring data center trends, activity, and pricing for more than 35 markets across North America, Europe, and Asia Pacific. datacenterHawk’s 4Q 2022 Market Analysis is expected to be released shortly after the quarter ends.
