New Data Center Leasing Rates for Premium Colocation and Wholesale

We recently acquired a pricing graphic that we first observed late last year at the IMN event on Data Center Development and Finance. At the time, it was cited by Rick Magnuson, who given that he is the Chairman of Digital Realty Trust, we were quite flattered that he would use this graphic. Â And then we realized his reference was a Tier1 research report, and we were less flattered. Below is our graphic.

Tier 1 Data Center Pricing Graphic

Data Center Leasing Rates

It goes without saying, WiredRE is not exceptionally skilled at graphics. But you can be the judge on who deserves the citation for original work. Further, as the red line above shows, it is possible to obtain exceedingly cheap colocation from even a very small commit. In fact, as of this month, on behalf of clients and now for our own book, WiredRE have procured over 170,000 sq-ft of data center real estate at approximately $1 per sq-ft.

Regardless of the above, please take note, we will be throwing out this model very soon. We have been advising our clients and investors that it is not nor has it been for a long time appropriate to bundle this industry into one big basket. Wholesale pricing has a much flatter curve, than retail colocation, and it has a different scope of supply as well, typically not incorporating low power distribution, telecom cabling, or the same level of security or remote support. We look forward to sharing with you, and Tier 1 Research, our new pricing guides very soon.

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