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% capVacancy
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% capVacancy
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% capVacancy
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% capVacancy
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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