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Data Centers: Enterprise CIOs Look to Lease Space

By Dennis McCafferty on 2011-05-27


Given the volume of data that all organizations must manage now to compete, it’s not surprising that the vast majority are planning to expand their data-center space this year, according to an annual survey of the North American data-center market from Digital Realty Trust Inc. The biggest trends? Leasing out space, instead of buying, and taking a do-it-yourself approach, according to the report "What's Driving the U.S. Data Center Market, 2011 ." “Increasingly, enterprises appear to be favoring the lease model, as fewer companies are choosing to go it alone on these capital-intensive projects,” says Michael F. Foust, CEO and director at Digital Realty Trust. “Unlike many of the large Internet companies, many enterprises that participated in the survey are choosing to lower costs and minimize development risks by working with a data-center specialist." Meanwhile, CIOs are finding more budget room for data-center operations than in the past, according to the research results. Approximately 300 IT decision makers at large corporations in North America took part in the research. Here are 10 selected highlights:

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85%


85% of survey respondents say they will "definitely" or "probably" expand usage of data-center space this year, up 4% over last year.

72%


72% of respondents project an increase in data-center budgeting in 2011, with the average budget increase cited as 7.7% higher than 2010.

18,000 square feet

18,000 square feet is the average size of data-center expansion, among those respondents who say their companies are planning for an increase.

51%


51% of the respondents whose companies are planning to expand their data centers in 2011 are considering a do-it-yourself approach, down 6% from 2010.

60%


60% of respondents whose organizations are pursuing data-center expansion in 2010 say they plan to lease the space from a wholesaler rather than build their own, up 7% from 2010.

3.9


3.9 is the average number of data centers operated by respondents.

One fifth


One-fifth of respondents report having six or more data centers.

59%


59% of survey participants expect increases in server density within the range of 5% to 20% within the next year.

76%


76% of respondents meter power usage, signifying the continuing widespread adoption of power metering as a best practice for data-center operations.

59%


59% of respondents say C-level execs have become an integral part of the decision-making process for data-center projects.

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