451 Research: Looking at the Chicago data center market

451 Research provides their insight into Element Critical’s two acquisitions in the Chicago suburb of Wood Dale, Illinois. Read their take below:451 Research provides their insight into Element Critical’s two acquisitions in the Chicago suburb of Wood Dale, Illinois. Read their take below:

THE 451 TAKE

Looking at the Chicago colocation market, a new provider without a huge national presence making a name for itself in the city seems like a difficult, if not impossible, task. As the local industry has grown rapidly over the last few years, however, operators have begun to divide themselves into two groups: wholesale developers going after hyperscale deals and players like Element Critical that are sticking with the enterprise despite the lengthier and more involved sales process. Although the former group accounts for most of the projected growth in Chicago over the next couple of years, and a handful of large cloud deals have grabbed all the attention, enterprises continue to drive most of the actual take-up in the area. By acquiring two live sites already operated as multi-tenant facilities in a highly desirable suburb, Element Critical seems primed for a quick start in the Midwest. Renovation and expansion before other enterprise-oriented providers get up to speed will be key to ensuring this initial momentum continues.

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