Data centres provide the infrastructure to a digital future
As society becomes more digitally connected the need to store, manage, process and transfer information grows exponentially. This fuels demand for the buildings in which these tasks are undertaken – data centres.
The pandemic has put the spotlight on data centres as companies and individuals depended on technology to stay in touch with their consumers, clients, colleagues and families. In March, Microsoft reported a 775% surge in usage of their services, including Microsoft Teams and Microsoft Virtual Desktop, in regions affected by lockdowns[1].
Distance between data centres and the devices they service determines response time. The rapid expansion of internet-connected devices enabled by 5G, the so-called ‘Internet of Things’, will increase demand for localised data centres. Driverless cars, for example, need instant information on their surroundings. More local ‘edge’ data centres within dense city centres where the highest concentration of data is being generated will be necessary. The limited supply of edge data centres offers prospects for investors that can identify locations and assets to accommodate them.
[1] Property Week, Data centres have come of age, October 2020
Tom Duncan
Senior Associate - Research, Strategy and Risk
Fintan English
Research Associate - Research, Strategy and Risk