Chicago: A Data Center Market Powerhouse for the Future

Chicago has long been a hub of innovation and connectivity, and the region has consistently been at the forefront of the U.S. data center landscape. Now, it’s gaining even more importance as data demands skyrocket. In the face of rising needs for secure, resilient infrastructure, particularly driven by AI advancements, Chicago data centers are expanding to unprecedented levels. However, with limited space, power constraints, and competitive land pricing, businesses will need to act quickly if they want to capitalize on this growing market.

Growing Demand Fueled by AI and Digital Transformation

AI and data-driven operations are redefining industries. As revealed in Newmark’s 2023 U.S. Data Center Market Overview, major tech players like Amazon, Google, Meta, Microsoft, and Oracle have significantly increased their investments to handle the growing digital workload. From 2017 to 2022, these companies collectively boosted data center investments from $42 billion to a whopping $158 billion. And while these tech giants dramatically increase their presence, data center service operators like Element Critical offer a strategic alternative for organizations aiming to capitalize on the AI boom. With a focus on mid-sized deployments, typically between 50kW-1MW with an average density of 5-20kW per cabinet, Element Critical provides the scalability and customization that larger global operators might not.

In Chicago, the demand for data center space reached remarkable heights in 2023, with vacancy rates plummeting to a mere 3%, according to JLL. This underscores a critical need for forward-thinking solutions, particularly for businesses planning to pre-lease spaces for future expansion. Element Critical is ready to meet these needs with its tailored offerings, positioning itself as a vital player in the evolving market landscape.

Why Chicago?

Chicago’s strength as a market extends beyond mere statistics. Its central geographic location and strong financial and internet infrastructure make it a prime destination for data center investments. The city is known for its strong network interconnectivity and strategic access to major fiber routes, providing ultra-low latency connections crucial for sectors like finance, cloud computing, and global communications. This “hub” status also makes Chicago an attractive disaster recovery site, offering proximity to the East Coast without the associated higher costs and congestion.

Further, Chicago’s top-tier universities and technical training programs ensure a skilled workforce. This is crucial as the industry grapples with challenges caused by an aging workforce and the pressing need to attract new talent to support its growth and innovation.

Navigating Market Challenges

Despite growing demand, Chicago faces notable challenges that could impact the data center landscape. Limited power availability constrains the development of large-scale data centers, especially as energy-intensive AI and cloud technologies accelerate consumption. Effective management of this shortage will be crucial for data centers seeking expansion or securing their foothold in the market.

Land availability and cost present another challenge. Chicago’s urban density limits buildable space, driving land prices up and prompting some operators to explore less constrained markets. However, many Chicago data center service providers remain committed to data center development and expansion to ensure capacity will remain available.

Looking Ahead

With vacancy rates nearing zero and pre-leasing rates rising, companies eyeing Chicago data centers should act now to secure space. Demand in the Chicago market stands unmatched by any other property type, with colocation data centers experiencing a 30% compound annual growth rate in occupancy since 2020. Lease rates have surged as competition for existing capacity intensifies, with rents increasing between 13% and 37% year-over-year depending on size and term.

As the demand for resilient, highly connected data centers grows, Chicago presents a unique blend of centrality, infrastructure, and expertise, making it a top choice for companies planning their data-driven futures. Still, with demand at an all-time high, proactive planning is essential to secure the resources needed for growth in this bustling market.

Seizing Opportunities with Element Critical

In this dynamic environment, Element Critical is uniquely positioned to support the diverse needs of Chicago’s evolving data center market with resilient and flexible solutions tailored for mid-market enterprises. Our facilities not only provide robust disaster recovery and business continuity options but also accommodate production, pre-production, and lab environments. This versatility allows enterprises to seamlessly integrate Element Critical’s offerings into their broader compute strategy.

At Element Critical, we excel in delivering customizable deployments that can be adapted to fit a wide range of business requirements. Whether an organization is looking to develop new applications in a pre-production setting or needs reliable infrastructure for day-to-day operations, our Chicago One and Chicago Two data centers stand out by offering precious and immediate availability, alongside customized services designed to seamlessly integrate with your business operations.

Don’t wait to secure your data center space! For a limited time, Element Critical presents exclusive migration promotion options. Opt for our migration promo and receive three months free with a 39-month contract or six months free with a 66-month commitment. Alternatively, benefit from our NRC Promo with 50% off NRCs on a 36-month contract or a full 100% off NRCs on a 60-month agreement.

Act now to take advantage of our immediate Chicago data center availability and select the offer that aligns with your business goals. In a city as dynamic as Chicago, running out of data space is a risk you can’t afford.

Contact Element Critical, and lock in your spot today!