Datacenter demand set to grow in 2010

Monday, 08 March 2010, 17:51 IST
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Bangalore: More than a third of large corporate datacenter users in North America plan to expand their footprint in 2010, and many are expanding because they have run out of power, not space, as per the findings in survey data released by Digital Realty Trust. The survey of senior decision makers with responsibility for their companies' datacenter strategies was conducted by Campos Research and Analysis for Digital Realty. Also revealed int he survey is that 83 percent of respondents are planning datacenter expansions in the next 12 to 24 months, 36 percent of respondents have definite plans to make those expansions during 2010, and 73 percent of respondents plan to add two or more facilities as part of their data center expansions. It's not surprising that Digital Realty believes demand will be high, since the company is in the business of building and leasing datacenters. But the customer survey's major points were echoed by multiple panelists at Wednesday's DataCenter Dynamics New York event. "Demand has been pretty steady," said Dan Golding, Managing Director at DH Capital, an investment bank specialized in hosting and telecom deals. "The story has really been supply. It's been very, very difficult for people to finance new datacenters." At the national level, the pending demand for datacenter space may be three times greater than the available supply of quality space, according to Jim Kerrigan, the Director of the datacenter practice at the real estate firm Grubb and Ellis. "All those deals that got shelved in 2009 because the CFO said no .. they're going to happen," said Kerrigan.