outlook - H1 2019
Our Mid-Year Global Data Center Outlook provides on the ground knowledge across local markets and an inside-look into this growing industry.
Despite a slight slowdown in demand, absorption remains positive with cloud activity accounting for a larger share of demand in the first half of 2019 than the previous year. REITs marked a comeback after a sluggish 2018.
The push toward edge locations calls for construction considerations. The combination of labor costs and availability and demand for shorter delivery times from corporate users presents challenges for developers. However, developers continue to innovate to complete state-of-the-art facilities on time.
Download the latest report from our Data Center Research team for in-depth market knowledge and a true pulse on the market. We discuss the current state of the industry, absorption, under construction news, local market activity, highlight mergers and acquisitions, and provide our outlook to the first half of 2019.
The tide changed for REITs in the first half of 2019. As of July 17th, year-to-date total returns for the five U.S.-based REITs is 29 percent. Positive investor sentiment is strengthening with increasing demand for new technologies, from artificial intelligence to 5G.
The first half of 2019 is off to a slower start compared to the first half of last year. U.S. and APAC markets recorded 256.0 MW of absorption to start the year, down 23.8 percent year-over-year. The U.S. absorbed 180.7 MW in the first half of 2019, while APAC turned in 66.0 MW.