Atlanta Sees Spike in Data Center Activity

The data center market in Atlanta has struggled since the economic downturn in 2008; many companies downsized or withdrew from the market completely, and the number of new tenants seeking space in the market dropped dramatically. Those heavily involved in this industry, however, are pleased with the progress this sector made in 2013. They say that big users are returning to the market – and their demands are greater than ever.

In years past, the typical data center user in Atlanta didn’t require more than 500KW of power; these new users, however, have requirements that far exceed this amount. Developers are beginning to realize that data centers are no longer developed with the “if you build it they will come” mindset. Instead, developers will have to start designing these facilities with the tenant and their increasing need for cloud storage and bandwidth in mind.

Data center activity is expected to stay focused in the Downtown submarket, specifically areas around Marietta Street. Marietta Street is raised with plenty of underground space for fiber, a key element that will keep attention on this submarket. While Downtown is currently the center of data center activity, some speculate that we will see companies begin to move their data centers outward. Advances in technology are beginning to make location less important than price.

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