Las Vegas is an emerging colocation market that has drawn increased attention in recent years as a desirable destination for backup and disaster recovery workloads.
This is driven by the area’s unique geography and climate characteristics, affordable power and property costs, along with proximity to important technology markets like San Francisco and Los Angeles.
The Las Vegas market is growing at a steady rate and utilization is accelerating, though at different rates when measured from a space and power perspective.
Growth is primarily driven by three demo- graphics:
- local enterprises moving to colocation – albeit at a relatively moderate pace
- enterprises from outside Las Vegas looking for a secondary or disaster recovery locations – often piggybacking with an existing provider
- hosting and cloud infrastructure pro- viders drawn to the lower costs and environment conducive to operating stability and uptime
The growth potential and upside in the market has drawn a number of new entrants into the market – both through M&A and green eld builds – and will tighten up competition in a market that remains very top-heavy.