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451 Research’s Dan Thompson on the State of the Data Center Market in Advance of the Greater Denver Data Center Summit: Political Instability, Asia-Pacific, Changing Markets

 
Aug 10, 2017
by Josh Anderson

DENVER, CO — As CapRate gears up for the Greater Denver Data Center Summit on August 17, 2017, we will be speaking with industry insiders from around the Mountain West region about the most interesting and timely trends and topics, and what they’re looking forward to at our Summit. To kick off this series, we spoke with Dan Thompson, Senior Analyst for 451 Research, who provided insight into some broad topics he looks forward to hearing about and sharing in Denver.

Dan Thompson, Senior Analyst for 451 Research

To begin, he looks forward to discussing how retail firms are continuing to offer services beyond colocation. “You will continue to see companies navigate that, figure out what services they should add, what fits well with their existing talent set, and then distributing that across their customer base – what can we upsell?” He says. “Answering that question will be critical for businesses as they think about how to satisfy future customer needs.”

Secondly, an evergreen topic of interest is that of political uncertainty. “That is a pretty fascinating topic,” says Thompson. “Some markets I cover are international, especially in Asia. There have been interesting developments since the Patriot Act all the way through to the Snowden effect. Some of that has caused a bit of a ripple in the industry in countries not trusting the United State anymore, not wanting to put their data here anymore.”

Thompson says these events have led to the genesis of interesting markets across the Asia-Pacific region specifically, but Europe as well. “It’ll be interesting to hear about how we are figuring out how to move forward as an industry, and what kind of markets firms are building in,” says Thompson.

Finally, Thompson wants to point out that he does think the overall national data center market is very healthy, and so he is looking forward to hearing what his colleagues are seeing across the sub-markets. “People for awhile were concerned that this push to the Cloud was going to end up robbing business from data centers, and that certainly has been the case in some instances,” he admits. “However, everyone has gotten comfy with the idea that the Cloud needs to live somewhere, and that will be in a data center.”

Thompson says that more often than not, this shift has caused data center providers to shift and pivot who they are marketing to, rather than go out of business all together. “We are still seeing data center markets growing nationally and internationally, and while some specific markets may slow, and some, like Ashburn, will constantly growing, it’s interesting to look at –from a growth perspective — what kind of market business will go to next. We’re not in a massive growth phase but growth will still happen and there is still money to be made.”

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