Imagine where data center development would be without supply chain disruptions and a lack of available power and land in some major markets.

Pat Lynch, executive managing director, global head of advisory & transaction Services, data center solutions, CBRE, said in prepared remarks that those factors could delay new construction deliveries over the balance of the year and beyond.

Nonetheless, according to CBRE's latest North American Data Center Trends Report, the percent of new megawatts that went online in the seven primary data center markets was up, year over year, by 20 percent.

Thomas Galli, partner at Duane Morris, tells GlobeSt.com that many factors are affecting the delta between supply and demand for data centers across markets and in specific markets, including the supply of equipment required to construct and operate data centers.

"As demand for data centers has substantially increased over the last few years, and is anticipated to further increase, the time to fill orders for equipment has increased as manufacturing capacity has reached limits and been affected by disruptions to supply chains for necessary components," Galli said.

"Larger owners and developers of data centers (e.g. data center REITs) got in front of this factor long ago by leveraging the volume of equipment they order to obtain preferred status for the supply of that equipment. This is a competitive advantage they use to market their data centers to hyper-scalers for faster and more certainly of delivery of data centers to their customers across the globe." [...]

To read the full text of this article, please visit GlobeSt.com (subscription required).