Data center REITs have returned more than 100 percent over the last two years. Crown Castle recently purchased Lightower for one of the highest per fiber mile prices ever. What is driving the growth? Isn’t everyone using the cloud?
The data center is still the safest place to store and process your data. The data center is where the cloud resides. Cross connect capabilities like connections to financial markets, exchanges, Bloomberg, Reuters, and even cloud providers like AWS and Azure make data centers more functional for companies looking to take advantage of their geography.
Geography impacts latency as light can only travel between two distances within a set span of time governed by physics. Tony Soprano said it best when talking about Real Estate to his son Anthony Junior, “Buy land AJ, ‘cause God ain’t making any more of it.” That couldn’t be more true about data centers. Areas like Ashburn, Virginia, are data center hot spots because of low taxes, bandwidth availability, and proximity to Washington, D.C. and New York.
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