New Data Center for Downtown, Alpharetta

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Metro Atlanta is a one of the top five largest data center markets in the US, supported by low power costs (half the national average), powerful fiber-optic networks, and a reliable power grid. Energy costs alone are enough to attract data center companies; running a data center in New York state will cost about twice as much as the same center would cost to operate in Georgia. As the East Coast’s busiest data center market, Northern Virginia, becomes overwhelmed with the amount of demand, companies are finding Georgia a much cheaper alternative.

Given the benefits to opening a data center in the Atlanta market, Quality Technology Services (QTS) is planning both an expansion and new development here. QTS first plans to spend about $150 million to increase the raised floor space of its current data center in the downtown submarket, referred to as Atlanta-Metro, by 235k SF. After work on their existing center is complete, the company will break ground on a new “server farm,” which could include up to 100,000 SF of raised floor space.

QTS isn’t the only data center company looking to take advantage of Atlanta’s ideal data center market conditions. Peak10 is developing a server farm in Alpharetta on 12 acres along Windward Parkway. The Alpharetta area has long been a hub for technology companies looking to remain outside of the perimeter; Verizon, Hewlett-Packard, and Microsoft all have regional HQs in the area.

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