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Key Market Drivers

■ Cloud leasing continues to be a primary driver in the majority of markets—with many cities reporting
upward of 25% leasing driven by cloud operators.

■ “Edge” markets seeing sizeable upticks in absorption as key players look to fill out their geographic
network.

■ Overall absorption continues on the path of normalization from the previous year’s cloud leasing frenzy,
yet pent-up demand still remains in many key markets.

■ Industry M&A expected to continue.
In 2017, 48 deals totaling nearly $20.0 billion exceeding 2015 and 2016 combined. The trend will
remain for the next several years as players continue to expand scale, services and expertise.

■ Foreign interest in the US data center industry is strong.
Foreign data center companies entering the U.S. data center market will be accelerating as international
enterprises and providers look to build a footprint for US customers.

■ “Gateway to the cloud” and the rise of add-on services.
As the data center industry continues to mature, enterprises will consistently seek out add-on services
and outsource data center expertise as hybrid models become the norm in 2018 and beyond .
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