Guides/Columbus/Data Center
Data CenterColumbus

Data Center Investment in Columbus

Columbus data center market's heating up fast. Intel's $20B chip fab investment changed everything - suddenly everyone wants exposure to Ohio's tech infrastructure play. Power's still available here, fiber's decent, and you're not competing with 50 other buyers like you would in Northern Virginia. Cap rates sit in the 5.5%-7.5% range depending on tenant quality and power capacity. Most activity's happening in the northwest corridor near Intel and around existing fiber hubs. Enterprise facilities are trading at premium pricing while older colocation assets offer value-add opportunities.

Market Context

Cap Rate Range

5.5%-7.5% depending on tenant mix, power capacity, and fiber connectivity. Hyperscale facilities with long-term cloud tenants at the lower end, multi-tenant colocation at higher caps.

Current Vacancy

12%-18% available capacity across existing facilities, though much of the available space lacks adequate power and cooling for current tenant requirements.

Rent Trend

Rents up 15%-25% year-over-year driven by Intel ecosystem demand and limited new supply. Hyperscale tenants paying $150-200/kW/month, enterprise colocation $200-350/kW/month.

Absorption

Strong absorption in northwest submarkets, slower uptake in legacy downtown facilities. New construction pre-leasing at 60%-80% before delivery.

Price Per Unit Trend

Price per MW ranging $8M-15M for stabilized assets. Premium for facilities with 2N power redundancy and multiple utility feeds.

Transaction Volume

$180M in trailing twelve months, up 45% from prior year. Mix of portfolio sales and single-asset trades.

Submarket Analysis

Northwest Corridor (Intel Adjacent)

5.5%-6.5% cap

Vacancy

8%-12%

Avg Rent (1BR)

$175-220/kW/month

Strongest fundamentals, new construction pipeline, utility partnership opportunities

OM Tip

Highlight proximity to Intel fab, available land for expansion, utility capacity commitments

Downtown Core

6.5%-7.5% cap

Vacancy

15%-22%

Avg Rent (1BR)

$160-195/kW/month

Legacy facilities need capital investment, fiber connectivity advantage

OM Tip

Emphasize carrier hotel proximity, existing fiber infrastructure, redevelopment potential

East Columbus (Near Port)

6.0%-7.0% cap

Vacancy

10%-16%

Avg Rent (1BR)

$155-185/kW/month

Logistics synergy play, available land, moderate power capacity

OM Tip

Logistics hub adjacency, land expansion options, Honda supply chain proximity

Southwest Industrial

6.5%-7.5% cap

Vacancy

12%-18%

Avg Rent (1BR)

$145-175/kW/month

Value-add opportunities, power constraints limit growth

OM Tip

Lower basis entry point, utility upgrade potential, industrial land availability

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What Your OM Needs to Address

Power Infrastructure Detail

Document total capacity, available capacity, utility feeds, generator backup, and UPS systems. Include utility rate structure and demand charges.

Data to Include

MW capacity by zone, N+1 or 2N redundancy level, utility provider agreements, backup power duration at full load

Cooling System Specifications

Detail cooling capacity, redundancy levels, and PUE metrics. Include seasonal performance data and efficiency improvements over time.

Data to Include

Tons of cooling capacity, PUE by quarter, cooling redundancy configuration, chiller plant specifications

Fiber Connectivity Map

Document on-net carriers, fiber route diversity, and latency to major markets. Include expansion capabilities for additional carriers.

Data to Include

Carrier list with entry dates, fiber route maps, latency measurements to Chicago/Cincinnati/Pittsburgh

Tenant Concentration Analysis

Break down revenue by tenant, lease expiration schedule, and expansion options. Address any single-tenant concentration risk.

Data to Include

Top 5 tenant revenue percentages, weighted average lease term, expansion space available to existing tenants

Utility Rate Trends

Provide 3-year utility cost history and forward rate projections. Include any special utility agreements or incentives.

Data to Include

kWh rates by year, demand charge structure, any economic development utility incentives

Intel Ecosystem Positioning

If applicable, document proximity to Intel operations and potential supply chain tenant opportunities.

Data to Include

Distance to Intel fab, semiconductor supply chain tenant prospects, related infrastructure investments nearby

Investment Outlook

Short Term

Strong demand continues through 2026-2027 driven by Intel ramp-up and AI workload growth. Expect continued rent growth in northwest submarkets. Power availability becoming more constrained.

Medium Term

2027-2029 should see new supply delivery which may moderate rent growth but absorption should remain strong. Utility infrastructure investments improve power availability in secondary submarkets.

Long Term

Columbus positioned as secondary Midwest data center hub by 2030. Edge computing growth supports smaller facility demand. Intel's success determines whether market achieves true hyperscale status.

Buyer Profile

REITs seeking Midwest exposure, private equity with operational expertise for value-add plays, hyperscale tenants considering build-to-suit opportunities near Intel campus

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