As we head towards another year-end close in the data center world, I would like to share a few of the notable accomplishments by us here at T5 and by the data center industry.
- 100+ cmw’s of wholesale leases were signed in the industry over the past 12 months.
- QTS & CyrusOne both completing public offerings as REITs.
- Social media, financials, retail colo/cloud players continue to be lead occupiers of data center space.
- Corporate outsourcing was slow to adapt in 2013; however we expect more acceleration of this trend in 2014.
We are also celebrating continued growth in several areas.
In addition to customer growth, we have made substantial progress in our expansion of T5@Dallas . Completion of this project is targeted for January, 2014.
As we increase our reach geographically, we are able to expand our workforce across the country. We have increased our headcount by 25% and now have a national staff of 41, including operations.
Lastly, T5 has raised an additional $193mm of capital during the year through several bank loans to fund our continued growth.
As we prepare to leave 2013 behind, we want to share our industry Predictions for 2014:
- Evolution of the Intelligent Data Center will be the key driver in 2014
- Other predictions include:
- Increased demand on both enterprise and colo/cloud requirements.
- Number of large transactions will increase.
- Financial services will take an oversize percentage of enterprise demand.
- Low Total Cost of Occupancy will continue to be a priority for most.
- M&A will occur in 2014.
Areas T5 will focus on in 2014 include the following:
- Continued lease up of existing portfolio – Capacity of 100mw’s+.
- Expansion of key existing projects.
- Expansion into several new markets including the Northeast.
- New service line will be added to respond to customer base.
- Focused M&A activity that supports overall strategy.
While 2013 had some interesting ups and downs, we believe that 2014 will continue to show more growth in the data center industry. Demand continues to outpace supply; outsourcing still has not taken hold in the wholesale area, however, we will see more of this in the coming 12 months; corporations will continue to hone their approach and the Intelligent Data Center Strategy (the right combination of Hybrid, Cloud, and Primary data centers) will dominate the thinking in the senior IT offices in 2014.
Enjoy the holiday season with your families and we look forward to seeing you at one of our data centers in 2014!
All the best from all of us at T5 Data Centers!