Strategy in the Southwest: “Customers in Los Angeles Today Are Not the Same Ones from Ten Years Ago”

LOS ANGELES, CA – The Southern California data center arena isn’t exactly the easiest to sum up in a sentence or two. It’s got its strengths as well as its weaknesses, and a lot of firms want to be there. But that doesn’t mean they can make the deals pencil. That’s why CapRE’s Seventh Annual Southwest Data Center Summit: The Telecom Evolution kicked off with a panel discussion called Southwest Data Center Market 360: Has the Outlook for the Los Angeles Market Changed with Advent of Edge, Micro Data Centers and On-Site Power Generation? Below, we highlight a snippet of that conversation, honing in on how SoCal compares to its closest neighbors. “Not to say that Los Angeles isn’t an active market, but it seems that [it is] pushing a lot of development, and we are seeing this, to the Phoenix market,” remarked Moderator Michael Siteman, Director for Chapter Relations at 7×24. “I think that over the next two years it’s probably poised to maybe even be the #2 data center market, just after Ashburn.” Next, Siteman looked to one of his panelists, Zane Alsabery, CEO of Alchemy Communications, Inc for further insight. “Zane, given the fact that there’s another competing market close by, what do you do as a provider to protect your revenue and your customer base? What do you have to do in terms of services and flexibility to retain your market position?” “I think that the…