Corporate Data Centers A Bright Spot in Real Estate Market

by Tom Royce on January 16, 2009


Server-farmIf you are an investor and looking to put money into a real estate investment, there are some bright spots available. The need for corporate data centers, or server farms, is exploding with the rapid growth of the internet.

The server farms typically need to be built near the confluence of the major data lines across the country and inexpensive and reliable energy.

For the companies that are building server farms business is booming.

Despite the still gloomy environment, one real estate investment trust that appears to pointing higher is San Francisco, Calif.-based Digital Realty Trust (nyse: DLR – news – people ). The real estate investment trust (REIT) owns, develops and manages technology-related real estate, primarily corporate data centers. Tenants include information technology and Internet enterprises, as well as those in manufacturing and financial services. As of Aug. 6, 2008, Digital Realty held 74 properties in 27 markets throughout North America and Europe, comprising approximately 12.9 million rentable square feet.  Forbes.com.

There is another facet of server farms that most people do not know. The builders and owners work very hard to make them as anonymous as possible. The threat of sabotage or attack is high with these buildings creating the need to keep a low profile. Very rarely will they have any signage telling passersby that what they do. You might have a large server farm near you and never have know it.

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{ 5 comments… read them below or add one }

Allison Smith February 4, 2009 at 1:16 pm

Great post! The company I work for, Lee Technologies, is part of this niche market on the facity side of data centers. We are hosting an event – Profiting in Mission-Critical Real Estate-on February 12 in Southern California to explore the growth opportunities for commercial real estate brokers and owners within this space.

Here’s a link for more information. http://www.leetechnologies.com/events/index.asp?view=detail&id=60

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Pakistan Property July 31, 2009 at 2:17 am

you have truly given rare cause of investment in real estate business , i am sure if not now but in near future data centers or server farms will contribute a major role in booming real estate market.Thanks for the info

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Jennifer johnsan July 31, 2009 at 11:02 am

Hello every one !!

well this post was very informative for me……. i have got a lot of useful info from this specially the way every thing is explained so systematically…..

regards

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Clara James August 3, 2009 at 5:27 am

Now people are realizing there are great prices, there's great selection, there's great interest rates. If you like cookies, you have to eat when they're passing the plate. Right now, the plate is coming with great deals.

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IT Stuff February 17, 2010 at 9:16 am

Developing is very important when it comes to some niches. I wonder how much it takes to achieve this rates of development to some areas, like Africa. I am a fan on investing, in what brings profit, and really see that server farms are on the begining to develop in some countries.!!

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