Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
 2023 Global Data Center Comparison  2023 Global Data Center Comparison

2023 Global Data Center Market Comparison

Read the full report

Explore a unique way to assess and score 63 global primary and emerging data center markets utilizing 13 criteria.

Table of Contents

Top Ten Markets  |  Key Evaluation Metrics  |  Americas  |  APAC  |  EMEA

 

 

 

Cloud services have become a strategic determinant of interest in new markets by tenants as well as developers and investors. The presence of major cloud services act as an assurance of scalability for future demand as well as a validation of the fundamentals of the market. Of the 63 markets profiled in this report, 34 now offer some form of presence from all three major US cloud services, with considerable further expansion planned and land already acquired in several locations.

Source: Cushman & Wakefield Research 

Larger capacity markets enjoy well-established inroads with local governments and utilities as to the planning, approval, construction and provisioning of power for new data center developments. This metric enables a gauge of one component of the relative risk profile of a market, with larger markets representing less risk while smaller, more emergent markets generally represent higher risk. Greater market sizes also ensure that on-site staff, sales teams and other supporting human capital are in place to support future developments. The largest markets are thus positioned for continued growth, at least until there is capacity strain on the local power grid or political imperatives change.

Source: Cushman & Wakefield Research 

A key component to operating expenses for a data center are local power costs. Depending on available energy sources, infrastructure and government policies, the cost of power can vary widely between markets. As increasingly larger deployments become common, the cost of power and its availability are a critical factor for data center developers. Over the past year, this has become an area of much discussion for feasibility analyses as energy prices have risen substantially across many markets. Inflation, supply chain issues and geopolitical crises have all contributed to higher power costs for the end consumer. While power cost does not encompass all the issues of power availability that arose in 2022, it does provide a useful indicator for market comparison.

Source: Cushman & Wakefield Research 

Regional Highlights

AMERICAS

In 2022, established core markets in North America began to feel the growing pressures of limited power and land. Northern Virginia, the largest data center market in the world, encountered an unprecedented multi-year pause on development in certain submarkets, as utility companies work to address a massive development pipeline. As a result of this, there has been growing interest in secondary markets such as Portland, Phoenix, Columbus, Canadian markets among many others as operators seek larger sites with affordable power. There is still plenty of momentum in more established markets, such as Northern Virginia, Silicon Valley, Chicago, Dallas and Atlanta, as eyes are turning toward untapped submarkets where land and power may be more available.

01/ Northern Virginia*                 06/ Dallas
       Portland*                       07/ Phoenix
03/ Atlanta* 08/ Seattle
       Chicago* 09/ Toronto
       San Francisco Bay Area* 10/ Montreal

*Ranking tie


APAC

The top markets in the region continued to experience growth in 2022 despite headwinds originating from lack of available land sites, power availability and regulatory frameworks in certain locales. The top market, Singapore, lifted its moratorium and established new policies and parameters that have reopened this key market to savvy developers who can satisfy the government’s new requirements. Another critical trend has been the increasing interest in smaller, emergent data center markets across APAC. These include Bangkok, Johor, Hyderabad, Ho Chi Minh and Manila – all of which have been added to our selected markets list for 2023.

01/ Singapore 06/ Beijing
02/ Hong Kong                       07/ Mumbai
03/ Sydney*                   08/ Shanghai
       Seoul* 09/ Melbourne
05/ Tokyo 10/ Kuala Lumpur

*Ranking tie


EMEA

While development headwinds continue in certain FLAP-D markets, all of these markets continue to place at the top for the region. Growth in secondary markets has been one of the hallmarks of the past year, with increasing interest in markets such as Madrid, Milan, Zurich, Berlin, Warsaw, Oslo, Norway and Barcelona. The extent of political headwinds in markets such as Amsterdam, Frankfurt and Dublin also became clearer as official regulations were established, aiming to reduce pressure on local power grids and land, while simultaneously incentivizing sustainable development. Opportunities remain for discerning investors in both large and small markets, with overall development activity in the region continuing to grow.

01/ Amsterdam 06/ London
02/ Paris                     07/ Frankfurt
03/ Zurich 08/ Stockholm*
04/ Madrid*        Oslo*
       Dublin* 10/ Berlin

*Ranking tie

Want more information about data centers?
Subscribe to stay updated about what's next for the data center sector of commercial real estate. We also deliver full services from site selection, appraisals, and facilities management to sales and leasing, using deep data center expertise.
Subscribe Learn more

AUTHOR

Jacob Albers Headshot
Jacob Albers

Research Manager • San Francisco

Related Insights

Data-Center-Update_2021_Americas_web-card
Research • Data Center

Americas Data Center Update: First Half of 2022

2021 continued with much of what began in 2020; strong absorption in several core markets that was only limited by the extreme lack of supply in key markets such as Northern Virginia and Silicon Valley.
Jacob Albers • 3/24/2022
Data-Center-Update_APAC_web-card-1221
Research • Data Center

APAC Data Centre Update

As the largest data centre markets in the region face challenges when it came to site and power availability, operators have sought both new submarkets in major markets to grow as well as aggressive expansion into secondary and emerging markets across the region.
12/21/2022
Data-Center-Update_EMEA_web-card-q32022
Research • Data Center

EMEA Data Centre Update

 
Jacob Albers • 11/1/2022
apac data centre
Research • Data Center

Asia Pacific Data Centres

Our Asia Pacific Data Centre Advisory Team as part of our Global Data Centre Advisory Group, has created optimal solutions and location strategies to address highly complex IT requirements for enterprise clients across the region and globally since 2004.
9/13/2022
Trinity
Research • Data Center

A new trinity for measuring data centre sustainability

Explore how Power Usage Efficiency (PUE), in combination with Water Usage Efficiency (WUE) and Carbon Usage Effectiveness (CUE) can form a more holistic measure of sustainability performance for data centres.
Vivek Dahiya • 9/12/2022
112021DCInstantInsightcard

Instant Insight: Data Center Success Leads to Sustainability Questions

As data centers thrive worldwide, questions are being asked about sustainability and environmental impact.
Andrew Fray • 11/9/2021

Ready to talk?

We look forward to connecting with you.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS