Law Office of Henry B. LaTorraca Civil Trial Attorney

Data centers and commercial real estate

California investors who are interested in current trends in commercial real estate may be interested in how cloud demand is affecting the industry in North Texas. The Dallas-Fort Worth area is one of the top four data center markets in the world and has the potential for even more growth in the future as the demand for cloud storage increases.

According to a study conducted by Cisco in May 2016, 83 percent of all data center traffic would be centered in the cloud in the next three years. The results of the study also indicated that over 500 zettabytes will be generated by 2019, almost five times the data that was generated in 2014. The demand of data per person and the consumption of the data in gigabytes continues to increase each year. There would have to be a substantial decrease in population to drive down data demand.

The model has changed for how companies opt to locate their data needs and how consumers choose to use that data. Commercial real estate developers who had previously not focused on data center projects have been paying attention. The growth of corporations and the increase in cloud demand is driving the development of more data centers. Because of its central location, tax benefits, low electricity costs, population growth and lack of natural disasters, North Texas is an attractive option.

Individuals who invest in commercial real estate may benefit from the variety of services offered by an attorney who practices business and commercial law. The attorney may assist with negotiating and drafting purchase, lease or management agreements and arranging real estate closings.

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