Data Center Market Reaches Absorption High

Kevin Imboden • 3/2/2020
The Atlanta data center market enjoyed a strong end to 2019, with the highest quarter of absorption recorded in the market.

Atlanta Data Center stock photo

The fourth quarter accounted of 19 of the 24 MW taken in 2019, buoyed by the widely reported 12 MW lease by Twitter from QTS. This was among the largest deals throughout the country last year. What’s more, it confirmed QTS’s commitment to the city with continued development at the initial Jefferson Street location and the first phase underway at the nearby second location on Marietta Street aiming for a mid-2020 launch.

Facebook’s Newton County data center is also aiming for a 2020 launch. The social media giant acquired the land to great acclaim in early 2018 and is launching the first phase of what will be a multi-phase project. The campus will be powered entirely by renewable energy, with Silicon Ranch developing a 107 MW solar farm in Denton, Georgia, to power the facility. Facebook received a large package of local incentives at project launch, adding to the statewide benefits available to all operators.

Investment in operating assets was quiet throughout 2019, with two facilities in Atlanta (mainly an office building with a data center leased to regional edge operator DC BLOX) and Alpharetta (a leaseback to Data Scan Technologies) selling separately for a total of just under $19 million. A bigger sale closed early in 2020, with Mapletree Investments and Mapletree Industrial teaming up to acquire a data center in Lithia Springs from Digital Realty as part of a much larger national portfolio. Valued at $94 million, the building is home to Cyxtera and Evoque and offers considerable developable land.

As our recent market comparison report indicates, Atlanta remains an attractive data center option thanks to strong fiber, particularly throughout downtown; affordable power; low land cost; and statewide incentives leading to it finishing just outside the top 10 globally.

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