What an amazing few months it has been for the team here at Stream Data Centers. Back in April, we announced the purchase of roughly 23 acres of land for our new DFW-VII hyperscale campus in Garland, Texas. Over the summer, we refined our plans for this Tier III 138,132 SF facility, slated to hold 75,000 square feet of raised-floor space and designed to support 15MW of 2N critical load with dual 40MW utility feeds. Available in June 2019, this hyperscale facility will be a strong competitor to other Dallas-market data centers, offering robust fiber connectivity and reliable power infrastructure. You can read our spec sheet here for all the details related to DFW-VII’s power, cooling, connectivity and security capabilities.
As we continue to move forward completing our newest data center, you might be wondering what makes us confident that we can truly meet customer demand in the markets we serve. After all, with advancements in cloud platforms, the Internet of Things (IoT) and even Artificial Intelligence (AI), the needs of today’s enterprises are quite varied. To be successful in the US data center market, we believe it is critical to stay ahead of our customers’ IT roadmaps and efficiently build facilities that can accommodate various types of users. After all, the US data center market, as measured by the development of new facilities, is growing 5% annually; by 2023, the sector is projected to generate revenues of about $10 billion. As a result, it just makes sense for us to capitalize on our strengths.
State of Data Center Demand
At Stream, we pride ourselves on accurately assessing demand for data centers and establishing the right facilities in the right places. The good news is that across the markets we serve – Texas, Illinois and Minnesota – data center demand is strong and on the rise. Here is a summary of the key trends occurring in these markets.
Minneapolis, Minnesota is home to a significant number of Fortune 500 companies. As these organizations’ on-premises data centers age, they are increasingly looking to regional and national colocation providers to fill the gap. Because of its predominantly cold weather climate, the Minneapolis – St. Paul region is especially ideal for colocation providers looking to keep cooling costs low. As a gateway for IT traffic to the Pacific Northwest and an emerging technology hub, RE Journals recently ranked Minneapolis as the second-strongest data center market in the Midwest after Chicago. With tax breaks, low utility costs and strong connectivity infrastructure, our data centers in Chaska, a suburb on the outskirts of Minneapolis, are helping generate substantial savings for our customers.
In Texas, the Dallas/Ft. Worth market is also seeing continued growth, especially from hyperscale cloud providers and enterprise cloud computing users from the technology, financial services, health care, energy and other sectors. Like Minnesota, eighteen Fortune 500 companies have their corporate headquarters around the area and are increasingly collocating their infrastructure with providers like Stream.
With affordable power rates and a low natural disaster risk, major cloud providers like IBM Softlayer and Rackspace have partnered with colocation providers in the suburbs around Dallas. As well, Facebook has a $1 billion data center campus in Fort Worth. However, one of the biggest announcements for the Dallas-area market came this August when internet giant Google announced plans to build a new data center in Midlothian, a suburb 25 miles southwest of Dallas. All together, the metroplex area is now one of the largest and most active data center markets in the US.
With 11 facilities across Texas, seven of which are located around the Dallas/Ft. Worth area, Stream is perfectly poised to offer customers high levels of space, power and cooling capacity as well as geographic redundancy and cost savings from the state’s data center tax exemption program.
When it comes to Illinois, Chicago stands out as the third largest data center market in the US, as well as the third most active market for construction of new data centers. With a low risk for natural disasters, reliable power infrastructure and robust fiber optic connectivity, many regional and national data center operators continue to see the city’s metropolitan area as an excellent place to grow their operations. At Stream, we share this outlook and are currently developing a Ready-to-Fit hyperscale data center in Elk Grove Village, a suburb of Chicago. With big hyperscale cloud providers like Microsoft viewing the city as an edge location, we see a long-term trajectory of growing data center demand from cloud service providers and enterprises in this region.
Our Keys to Success
Although one could go into much more detail analyzing these markets, this snapshot already supports our decisions to continue investing in new facilities in these areas. At Stream, we believe in four simple parameters to solve the question of what type of data center design and build is right for any given market. Here they are:
- Capacity – maintain ample availability of land, space and power, to balance supply and demand.
- Establish key performance indicators (KPIs) – never lose sight of KPIs such as health and safety, efficiency or quality metrics.
- Speed to market – partner with a loyal and dependable supply chain to easily meet timing and delivery expectations.
- Stay ahead of market needs – keep construction-ready sites available for immediate build-to-suit or modification, so customer operators do not have to start their data center projects from scratch.
- Listen and respond to every customer’s specific concerns – to furnish the right product at the right time and ensure alignment across all design and construction channels.
At Stream, we are always ready to launch new developments by offering fully-vetted products including Hyperscale Cloud Centers, Ready-to-Fit™ Powered Shells, Private Data Center™ suites and Build-to-Suit Data Centers. The latter option combines our proven design approach with customer-centric solutions to deliver a hybrid product that resolves all needs – and future-proofs the company’s IT strategy. We make it easy to deliver the right data center product tailored to meet all our customers’ requirements. This means adhering to a consultative design process, listening to our customers and staying true to solving their design and construction problems.
Find out how you can benefit from Stream’s colocation services. Visit our website to learn about our complete suite of products and services. You can also contact a leasing, development and services specialist who can customize data center solutions for you.