Saturday, January 21, 2012

Data Center Supply And Demand Dynamics

Read the whole article at Seeking Alpha:

>>Building data centers is a very capital-intensive business, that also requires very good insight into future demand, as bringing a new facility on line may necessitate up to 18 months, with several additional months needed to fill it up in case of multi-tenant locations.

While the business model is now generally recognized as a potentially very margin-rich activity, supply and demand remains the single most important factor investors should be looking at, as it strongly impacts market pricing for data centers and profitability for the companies involved in the sector.

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