The Data Center Boom By Gary Tasman The digital revolution is reshaping commercial real estate, with data centers emerging as one of the most in-demand asset classes. The surge in cloud computing, AI, and IoT has fueled an unprecedented need for data center space, both globally and in key U.S. markets. Florida, with its emerging data center market, strong connectivity, and business-friendly environment is becoming an attractive location for companies looking to establish a robust digital infrastructure near the Florida business and consumer marketplace. Florida’s Competitive Advantage in Data Centers Florida has data center hubs in Miami, Tampa, Orlando, and Jacksonville. Its excellent fiber optic infrastructure and position as a hub for submarine fiber landings make it a key gateway for global data connectivity. Additionally, Florida offers competitive electricity rates, with some exemptions on electricity sales tax, making it a cost-effective environment for data center operations. Florida has abundant power in many locations. Development & Conversion: A Real Estate Opportunity As demand grows, both new developments and adaptive reuse of commercial properties are becoming viable solutions. Industrial warehousing and manufacturing buildings can be converted into data centers, leveraging Florida’s favorable infrastructure and cost benefits. Investors and property owners should consider power availability, diverse fiber availability, flood risk, and hurricane risk when exploring these opportunities. Sustainability & Security: Key Operational Considerations Sustainability is a major focus in data center design, with renewable energy integration, water-efficient cooling systems, and regulatory compliance shaping the future of operations. Security—both physical and cyber—is also a top priority, making data centers among the most fortified commercial properties. Investment Outlook: Florida’s Growing Market For investors, Florida’s data center market presents a strong opportunity for long-term value. Florida is an emerging market and is considered underdeveloped for the coming data center demand. There are development and investment opportunities to reposition land for data center development and convert existing buildings. There are also investment acquisition opportunities to consider. Colocation models, capital stacking strategies, and evolving valuation metrics provide diverse entry points into this high-growth sector. With demand continuing to rise, commercial real estate professionals must stay ahead of market shifts to capitalize on Florida’s position as a data center hub. Florida’s data center market is very exciting and is poised for unprecedented growth. With over 100 data centers already established and significant investments projected to exceed $2 billion in the coming years, Florida offers a highly attractive environment for data center investment and development. The state’s business friendly policies, abundant renewable energy resources, and strategic connectivity to undersea fiber optic cables make it a prime location for both national and international data center investment.” Randolph W. Borron, Vice Chairman, Global Data Center Advisory Group, for Cushman & Wakefield CONTACT GARY TASMAN, CEO & Principal Broker At Cushman & Wakefield | Commercial Property Southwest Florida, we understand the evolving landscape of data center real estate. Whether you’re looking to invest, develop, or reposition existing assets, our expertise can help you navigate this rapidly growing sector. For more insights on Florida’s data center real estate opportunities, contact Gary Tasman today at 239-489-3600 or by email gtasman@cpswfl.com.
