Data Center Development Opportunities in Secondary Markets

This report discusses data center development opportunities in secondary markets, particularly in light of constraints in primary markets. It outlines the increasing demand for data center capacity driven by technological advancements, including the AI revolution, which has led to a scarcity of suitable sites in primary markets. The report identifies key factors that influence market attractiveness, such as the availability of power and land, cost of reliable power, fiber connectivity, tax incentives, and the risk of natural disasters. It emphasizes that while primary markets have historically dominated data center capacity, there is a growing need to explore secondary markets to meet future demand. The report also highlights specific secondary markets that present strong investment opportunities, detailing the characteristics that make them viable for data center development. This includes considerations such as proximity to population centers and primary markets, which can enhance operational efficiency and access to skilled labor.