The Data Center Market's Development
Ascent is building spec data center space in the Chicago market for the first time, and CEO Phil Horstmann will tell us more at Bisnow’s 3rd Annual Chicago Data Center Boom on Feb. 25. The market has picked up quite a bit since the holidays, Phil (snapped with his son Henry at Yosemite) says. (People need to store all their New Year's Eve photos.) The firm’s building out a new tenant space at its suburban facility, CH2, in Northlake (below), along with some spec capacity to help it compete on future deals that have a short fuse. Downtown in the South Loop, Ascent kicked off work on CH3 last summer, doing site cleanup and demo on the unusable portions of the property.
CH3 will be an adaptable next gen data center space, he says, featuring top notch fiber connectivity, readily available power, 32’ clear heights, and 40’x50’ bay spacing. Phil says the highest demand for new space is coming from large enterprise users, the financial services vertical (especially since Superstorm Sandy), and Internet services firms looking for a local presence. The Chicago market benefits from being the third-largest Internet eyeball market in the US, the No. 1 peering market from a network connectivity perspective, and low-carbon power (thanks to the Midwest’s nuclear supply), he says.
ESD EVP and GM of engineering Mike Kuppinger says the challenge for data centers is to differentiate on the design side to meet the dynamic market-driven demands. “When the boom started, it was all about speed to market and one size fits all,” he says. “Now it’s about customization and a higher level of value.” ESD is spending a lot of time digging deeper into the IT side of its clients' needs. Then they work with colocation owners and operators to meet those needs similar to how enterprise data centers had in the past (with significant capital commitments). There’s more than enough capacity in the Chicago market, it’s just about finding the right fit, he tells us.
Things to consider: location, including safety and threat considerations, power, fiber, outsourcing services, etc. Data boomed in the East Coast and expanded through Virginia before moving to Chicago, and Mike predicts the next big markets will be Dallas (above), Houston, and Austin (where ESD has significant activity). The Chicago market will stay strong and steady, but he’s noticed many local firms venturing south. Outside of work, Mike’s getting his PhD in leadership and thinks growth for engineering consulting firms is all about finding, developing, and retaining the best people. He’s two years away from the degree and is writing his dissertation on how you build successful teams.
