Market Size of Northwest Data Center Industry
| Study Period | 2017-2029 |
| Base Year For Estimation | 2022 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2018 - 2021 |
| CAGR | 17.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Northwest Data Center Market Analysis
The Northwest Data Center market is valued at 285.52MW in the current year and is expected to register a CAGR of 17.5% during the forecast period to 979.41MW by the next five years. A data center is a specific area inside a structure or a collection of designs, including computer systems and related equipment, such as networking and storage systems.
- Portland's designation as a secondary market has gained traction due to solid demand for data centers serving the Pacific Northwest, affordable land, sustainable practices, and a variety of incentive programs. The Portland market has been one of the most sought-after in recent years, with commissioned power increasing by more than 700% between Q2 2019 and Q2 2022.
- The market is poised for ongoing expansion thanks to strong tax incentives, solid network access, a growing IT workforce, and decreased power costs. Oregon is one of just five states without a sales tax, which also has the infrastructure needed to run a business that other tax-free jurisdictions might not have. For example, compared to other West Coast markets, the operational costs of a data center in Oregon are also much lower than the national average—a robust data center pipeline results from these qualities and the low amount of available inventory.
- The region has serious data gravity issues, even though the concentration of data-driven global firms and high-tech startups creates several new business prospects across industries. This data explosion has significant ramifications. This is because enterprise management gets more challenging when more data is generated and processed throughout organizational locations.
- Furthermore, with the outbreak of COVID-19, the country was significantly affected, which disrupted data center service providers in the region. Moreover, with the nationwide travel ban enforced in the country, many organizations adapted to work from home, which increased the data traffic significantly and put tremendous pressure on the data center, coping with the existing capacities to prevent downtime.
