Northern California Data Center Presence Strong…And Getting Stronger

With an estimated three million square feet of data center real estate, the greater San Francisco area is one of the top three data center markets in the nation. And as the northern California region hits a refreshed economic stride, the region that is synonymous with technology will benefit from the recession’s pent up demand, as well as ongoing corporate adoption of cloud strategies across all types of industry.

On a big picture level, Campos Research & Analysis just completed a study for Digital Realty Trust, which was released this week. Overall, the North American data center market demonstrates an incredible appetite for expansion, as the survey found that 92% of senior decision makers at large corporations have plans to expand their data center presence in 2012. 54% of these respondents identified expectations of projects to span 15,000 square feet or more in size.

Consider as a supporting barometer, the direction of office real estate in general within the tech sector. This benchmark accounted for 29% of all growth in the US office market in 2011, adding an estimated 10.2 million square feet of space as identified by real estate services firm Jones Lang LaSalle, Inc. A positive marker indeed.

Within the northern California region, the City of Santa Clara, with its proximity to Silicon Valley is already considered one of the densest data center hubs in the country. Developments in the San Francisco Bay area are seeing opportunity, such as a project in the vibrant South of Market (“SOMA”) District, which is now coming up to speed. The Fiber Depot is a six story, 105,325 rentable square foot data center, telecommunications and office building, The former Hawley Terminal Building was previously a storage facility for the Southern Pacific Railroad, and was converted into a telecom switching building, utilizing its ideal location to two primary fiber network loops. Offering a substantial power supply, an upgraded carrier neutral meet-me-room, and large floor plates with load-bearing capacity for heavy equipment, transitioning to data center tenants was a natural evolution.

At present, the site attracts a diverse group of telco and data center tenants, including AT&T, AOL/Time Warner, Global Crossing and Neutral Tandem, with the remaining space leased to office and retail tenants. For details on the Fiber Depot carrier hotel facility, or data center real estate, colocation and design services, visit Wired Real Estate Group, Inc.

Blog post originally posted on Broadband Nation. See a full list of California Data Centers.









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