25 Oct The Hyperscale Data Center Real Estate Market
The hyperscale data center real estate market has become one of the key sectors of the real estate industry. Not only does this market satisfy the demand for IT systems it has also become critical for most tech companies.
What is a Hyperscale Data Center?
A hyperscale data center is a data center, or a facility used for critical computer storage and networking infrastructure, that can efficiently support massively expanding networks at critically fast computing rates. To be considered hyperscale, a data center must exceed 5,000 servers. These massive computing facilities are capable of supporting tech giants such as Amazon, Google, Microsoft, Meta (Facebook), and IBM.
As more organizations rely on cloud communications and more consumers rely on immediate mobile access, data centers are becoming more prevalent every day.
Hyperscale Data Centers in Real Estate
Data centers are already a critical asset of the telecommunications infrastructure, but with more strain being put on these existing facilities the need for data center development is increasing as is the reliance on hyperscale data centers. This is creating increased demand in the real estate market for these types of facilities.
A majority of already established buildings can be developed into a data center with efficient connectivity. However, to develop a hyperscale data center a massive amount of architecture, power, and funding must go into the site.
“According to a survey, most hyperscale companies expect a connection rate of at least 40 GigaBytes per second or faster. They comprise 5000+ servers with an area in excess of 10,000 square feet.” Many of these massive facilities even surpass 2 million square feet.
A typical hyperscale data center houses 20-50 megawatts (MW) per data center and 10-25 kilowatts (KW) per rack.
The development of these powerhouse facilities easily surpasses billions of dollars. In 2021, Equinix spent $3.9 billion in funding for its Singapore hyperscale data center.
These facilities are in demand in the real estate market and are having a major impact. The following facilities can showcase the potential impacts.
- Mongolia, China is home to a China Telecom hyperscale data center that cost over $3 billion to develop, sprawls over 10.5 million square feet, and has over 150 megawatts of capacity.
- Las Vegas, Nevada is home to Switch SuperNAP’s hyperscale data center was announced as a $1 billion project with over 3 million square feet and up to 531 megawatts of capacity.
- Council Bluffs, Iowa is home to a Google hyperscale data center that cost $2.5 billion to develop, sprawls over 2 million square feet, and has over 100 megawatts of capacity.
While the funding of these developments may seem intimidating, the architecture and power provided by these hubs are impactful to the surrounding communities. Being able to locate these buildings can be impactful for any real estate team or countless organizations in a variety of industries. Find these data centers and make an impact in your organization by contacting GeoTel today.
Author: Valerie Stephen