Silicon Valley Data Center Space Still a Vital Commodity, an Industrial Info Market Brief

The area of northern California that lies south of San Francisco, between Palo Alto and San Jose in the Santa Clara Valley, more commonly known as Silicon Valley, has been a prime center for the technology industry in the U.S. since the emergence of the Internet in the 1990s and the subsequent dot-com boom. Many companies have their headquarters or major facilities in the area and will continue to operate here for years to come.

These companies will require expanding data infrastructures, as the growth in technology continues. This will spur continued expansion of the data center facilities in the region, even with the high expenses due to real estate acquisition, power delivery and the risk of earthquakes that are not as much of a challenge in neighboring states such as Nevada and Arizona. The major colocation/cloud space providers see it as a strategic business necessity to continue to expand capability there.

Industrial Info is tracking 10 projects valued at $1.78 billion in investment value for ongoing expansion of data center facilities. Even with the relatively less expensive options in the nearby states for large data centers, it appears that Silicon Valley will continue to have a large presence in the data center marketplace. Click here for the list of projects and click on the graph below.