Silicon Valley data center market

We've recently been asked specifically about the Silicon Valley data center market (feel free to submit any question you might have either in the comment section or by mail).

In a few words, we believe that the Silicon Valley market mirrors the general situation of the US colo markets: a nice (for the colo Companies active in the market) unbalance between a strong demand and little room available.

This is taken from Data Center Knowledge, and dates back to January 2009:

>>Kelly said the space available at the San Francisco data center wasn’t a sign of weakening demand in the local colocation market, noting recent projections from Tier 1 Research. In a November report, Tier 1 predicted that colocation demand in Silicon Valley and the Bay Area will continue to outpace supply, boosting data center utilization from the current 70 percent to 95 percent by 2012.

The credit crunch contributed to reducing new builds.

Equinix is among the few Companies who recently built new data centers in the area - and in spite of some pro-active churn, in particular of a wholesale customer, that freed several cabinets in their existing centers, they are looking forward to the opening of the new center, as they are approaching full occupancy.

New builds in the area are now being planned by a few Companies like Digital Realty and Coresite - but that's more of a wholesale approach that will please large customers and let smaller customer looking for the right partner to accomodate their growth needs.