Data Points for Days: Sami Badri Illuminates State of Utilization, Revenue per Unit, Leasing Backlogs, and Interconnections at CAPRE’s Atlanta Data Center Summit

ATLANTA, GA – CAPRE’s Fourth Annual Greater Atlanta Data Center & Cloud Infrastructure Summit featured a keynote presentations by Sami Badri, Senior Analyst for Credit Suisse, titled “The Acceleration of Colocation in 2019,” which dove deep into questions large and small about the state of the data center supply chain – which covers everything from Juniper and CISCO to Equinix and Digital Realty. In this CAPRE Insider Report, we highlight some data points that Badri illuminated regarding utilization, average revenue per unit, leasing backlogs, and interconnections – and what that data says about the state of the broader sector. First up, Badri looked at utilization. “Utilization, of course, on the publicly traded site, is naturally a bit higher, than in the private market,” he began. “In the private market, utilization can be as low as 30% to as high as 100%. That is a private market phenomenon, and generally speaking, everyone wants to be 100% utilized, but everyone knows that that’s not always the case." According to Badri, on the publicly traded site, the industry is chugging along at a very healthy clip, with the lowest reported rate being 75% and the highest being probably in the Digital Realty and QTS range, with 87%-88%. “So once again, utilization is extremely healthy,” Badri reiterated. Next, Badri moved onto average revenue per unit growth for the second quarter of 2019, first explaining what that somewhat opaque phrase means. “What that metric really…