Silicon Valley is experiencing a boom in data centers.
According to a report by Cushman & Wakefield, as of the end last year, 17 facilities were either in construction or development. According to the report, data centers currently in development would cover 4.7 million square foot of space.
Comparatively, the 25 companies listed on the Business Journal Data Center Operators List have data centers that occupy approximately 8 million square foot of space.
Cushman's report on Silicon Valley said that despite rising prices for land and electricity, the market remains robust.
Cushman reports that among the companies building new data centers are the tech giants Amazon.com Inc. and Microsoft Corp. The new data centers, of which 10 are currently under construction, will add 688 Megawatts to the capacity of the region.
Cushman, in a report released in January, said that Silicon Valley was tied with the fifth best place to build a datacenter in the world. This report ranked areas based on various factors, such as market size, the availability of fiber internet, taxes, and land prices. Cushman stated that although land prices in Silicon Valley are high, the rising use of data centers due to the concentration of tech giants has boosted the ranking.
Cushman's report on Silicon Valley said that the development of data centers has increased to meet high demand.