Seattle-Portland areas hit the top in US data center areas with 352,000 square feet of data centers under construction. Future growth expectations for the Pacific Northwest, which is an ideal location for data centers, is a hot market.

The JLL North American Data Center Perspective Winter 2016 report, published that Seattle-Portland area data centers made it into the top 10 bracket in the US markets for data centers. Data center facilities across North America are facing a huge amount of growth, in 2015 there was a 6.1% increase in growth rate. Due to private industry and government outsourcing their data hosting more along with more businesses that taking themselves online. Companies like, Netflix and Comcast are seeing a huge increase of data driven entertainment, which is becoming the norm.


Trends driving data center growth: migrating to the cloud and content owners expanding services for consumers. Also, the threat of cyber-attacks and cybersecurity are hot topics for private and public-sector organizations so they’re looking into colocation data center business that can provide security in these areas. They’re also willing to pay top colocation price for top of the line technology, redundant network, facilities, service and compliance. Smaller companies and startups also desire cybersecurity for business.

With businesses or organizations large, small, private or public looking for more secure solutions and using more data than ever before, cloud hosting has become increasingly popular. Causing these businesses and organizations to look into multi-tenant data center MTDC providers.

MTDC providers have three key real estate factors to consider when deciding where a data center will be located:

  • Energy, tax and construction costs
  • Proximity to the user’s customer to minimize latency
  • Demand, how to service it

A huge factor for MTDC providers is energy cost. Other significant expenditures are construction and IT infrastructure investment costs. To encourage relocation of data centers some states like Texas are passing tax incentives. The recent tax legislation provides 100% exemption from sales tax on business personal property necessary for data center operation for large users.

Data center markets in and around large metropolitan areas are also seeing an increase. Northern Virginia saw an increase of over 60 MW in 2015, driven by the cloud hosting industry. Washington DC metro area companies, content providers and federal government are also needing more accessible cloud hosting space.

2015 Data Center YTD Absorption

Take away from the JLL North American Data Center in 2015 for the Pacific Northwest—Due to capital debt and equity markets being fluid many national and global large-scale developers will look to Washington and Oregon to fulfill west coast needs for growing. 2016 will bring the following to the Pacific Northwest, Asian demand will increase as major transpacific fiber cables are developed and enhanced. Urban and central business districts will see demand near the Internet exchanges as edge deployments in rural markets increase.

With multiple colocation data center space throughout the Puget Sound in: South Hill, downtown Seattle, Bellevue, Redmond and Tacoma, Colocation NorthWest has ideal data center locations for colocation needs. Colocation NorthWest has an established network which allows interconnection points to Canadian, Asian, European and American network service providers. Any business or organization private, public, large or small will be able to get fast, cost effective, reliable and secure data to meet your business needs.