Discover top 10 data centers locations
Data centers in 18 markets are now functioning at more than 90% capacity, led by Singapore and Northern Virginia, both with less than 2% vacancies, according to a new report from Cushman and Wakefield, which ranked the top 10 data center locations in highlights the world in 2022, based on scoring in 13 different weighted categories.
The limited capacity came despite what CBRE called "huge" supply growth in late 2021, despite rising costs for materials, transportation, fuel, labor, land, and equipment as the Consequence of Covid-19 supply chain restrictions and amid rising energy costs which are increasing being passed on to customers.
More construction work is expected to start in the most restricted markets with available energy as operators work to close off restricted areas loosen up, added companies in its January 2022 report, noting that the 55 markets it profiled now offer all three major cloud services, with "considerable further expansion planned and land already acquired in several locations".
The world's top 10 data centers locations in 2022
Market size, cloud availability, incentives, taxes, political stability, vacancy, development pipeline, sustainability, smart cities, energy costs, land prices, and environmental risks are the factors that Cushman and Wakefield use to rank the world's top 10 data center locations in 2022. Hong Kong made the top 10 for its "strong development pipeline, excellent networks, and all important services in the available cloud".
“One notable change is the evolution of the markets,” meanwhile, notes the report.
“In the past, markets for data centers emerged when telecoms and later switching operators built the first facilities and established supports. But today, many of the hyperscalers dominating the cloud, network, and internet services can enter a new or relatively immature market and just start big builds. This shift has led to a rapid increase in market size, particularly in cities across Southeast Asia, South America, and soon Sub-Saharan Africa. We expect secondary markets to continue to benefit as certain primary markets limit energy consumption and sustainability requirements put pressure on the industry,” it mentioned.
1. Northern Virginia
Northern Virginia was #1 overall again for the third year in a row.
“This is the world's largest data center market with a strong construction pipeline. It offers excellent connectivity, attractive incentives and low-cost energy,” Cushman and Wakefield 2022 Global Data The Center Market Comparison Report stated, “Vacancy is very low, the demand is high, and operators and tenants alike are eager to expand. It could be the first two-gigawatt market in the world in the next 2 years.”
2. Silicon Valley/Singapore
1st place is Hong Kong, 2nd place are Singapore and Silicon Valley… Silicon Valley and Singapore follow closely behind Northern Virginia in second place.
“Both rank high despite a lack of available developable land, and in Singapore's case, despite a moratorium on data center construction. The report said that both have strong ecosystems, excellent connectivity, and consistent demand, and all major cloud services are available and expanding quite rapidly,” the report said.
3. Singapore/Silicon Valley
The report skips straight to fourth as it selects just 10 locations and with Singapore and Silicon Valley tied for second place. Singapore actually appears to have lifted its moratorium on new DC construction in January 2022, although the Minister of Trade and Industry told law makers that “we [will] seek to anchor data centers that are best in class in terms of resource efficiency, which can contribute towards Singapore's economic and strategic objective”.
Atlanta is 4th in the list of the world's top 10 data centers locations in 2022
Tied for fourth place were the US's Atlanta and Chicago. Both offer “great incentives, low land costs, lots of development in pipelines, low power consumption.”
“It will cost more than most major data center markets,” said the report. (Georgia has at least 50 DCs, whose proponents cite superior fiber and "infrastructure as a former railroad city, connectivity to the Southeast, low cost of land and electricity." Georgia has at least 50 large data centers.)
The Stack points out that Illinois' data center tax incentives are proving the bait. The city will have a capacity of 303.5 MW in the first half of 2021, with competitive rental rates starting at $95 per kW/month.
6. Hong Kong
Hong Kong ranks among the top 10 data center locations for the first time. Hong Kong ranks among the top 10 data center locations for the first time.
The 2022 report cites a “robust development pipeline, excellent network,” and availability of “all major cloud services.” Including political stability as a factor despite the recent turmoil, the report said it was a “global financial and business capital,” he points out.
7. Phoenix, Arizona
Phoenix data center occupants leased more space and power in the second quarter of 2021 than in any other quarter. This is due to users attracted by CBRE due to the city's proximity to other major centers on the West Coast, affordability of land, and "abundant" availability of electricity. As mentioned earlier, Amazon will be there in January 2022, and there will be increases such as opening a local zone (edge location) there this month.
Cushman and Wakefield scored Sydney highly on political stability, cloud connectivity, and renewable energy. There are currently about 42 DCs in the Sydney area. Equinix has an edge in its six sites. Baxtel notes that its own campuses of SY1, SY2, SY3, and SY4 are closely connected in their own cities, making them the main peering exchange points in Sydney.
Portland's inclusion on the list is due to its "high fiber density and available location in local market clusters."
Portland and Seattle ranked 9th/10th in the report. Portland has become an increasingly popular destination, aided by a climate that keeps servers cool and has an ample supply of renewable energy. Like many others on this list, it also benefits greatly from a business-friendly tax environment/tax incentives.
The report cites its "high fiber density and available locations in local market clusters."
Seattle, tied with Portland for her 9th or 10th place, ranks high on sustainability.
As Equinix pointed out in his 2021 report, Seattle is also a great connectivity hub when it comes to the North American and Asia Pacific (AP) digital corridors.
“From Seattle, we have access to high-speed, low-latency terrestrial fiber routes to Canada and the rest of the United States via the Hawaiki Cable, and submarine cable routes to markets in China, New Zealand, Australia, Hawaii and Japan via FASTER. Submarine cable system. New providers such as China Mobile, China Telecom, Global Transit, Google, KDDI and SingTel are bringing more connectivity to Washington State," said Jeff Bender of Equinix last year.
Have you made your decision?
The data center is one of the core factors for the strong development of information technology today. Knowing the best data center companies in this industry will give you an edge in analyzing and fulfilling your desires. Above are the top 10 best data centers locations, each with its own strengths and core services. Learn more about Top Data Center Companies and Data Center Facilities.
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