A study of the U.S. data center market has found that more than three-quarters of large corporate data center users are planning expansions in the next 12 to 24 months.

The study, conducted by Campos Research & Analysis on behalf of Digital Realty Trust, showed that companies are quickly eating up their existing data center capacity and are planning to build new facilities. The result is 83% of respondents to the study said they are planning data center expansions over the next two years.

“These survey findings point to strong demand for data center space this year and next year as a large majority of enterprises expand their IT infrastructure,” Chris Crosby, Digital Realty Trust senior vice president of corporate development, said in a statement.

“The need for additional power has become the main driver for data center expansion plans as companies seek facilities with adequate power and favorable utility rates to control operating costs,” he added.

The study involved responses from 300 IT decision makers at large corporations with annual revenues of at least $1 billion and/or 5,000 employees.

Other key findings from the study included the following:

  • 36% of respondents have definite plans to for data center expansions in 2010.
  • The need for additional power is the top reason for expansion activities, rising from fifth place on a 2009 survey to first place this year.
  • 73% of respondents plan to add two or more facilities as part of their expansions.
  • Data center and IT budgets are both projected to increase by 8% in 2010, up from 7% and 6% respectively in 2009.
  • Of those planning expansions, 70% are planning large projects of at least 15,000 square feet in size.

Crosby added that another interesting finding from the study is the increasing role partners are playing in data center expansions. Corporations are turning to wholesale providers and other specialists “in order to leverage their expertise and to reduce or eliminate capital expenses.”



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