Cloud technology, which involves storing files and data on the internet rather than on a computer hard drive, is having a positive effect on commercial real estate in North Texas and elsewhere. Missouri developers may want to take note of this when they are planning their next projects.
In 2016, a study commissioned by Cisco Systems predicted that by 2019, more than four-fifths of data center activity will be cloud-based. The IT giant also estimated that by that year, more than five times the amount of data will be generated compared to 2014.
Some commercial real estate developers have taken note. In the Dallas-Fort Worth area, a company has embarked on an ambitious project involving up to 400 acres for data centers. The more that businesses rely on the cloud, the need for additional data centers will increase. Observers feel that this part of the state will be attractive for more development, due to its relatively low electricity costs and the growth of its population. Tax incentives are a factor as well. This could also have an impact on company practices. More employees will be able to work remotely, changing the way that offices are designed, and it will accordingly have an effect on the need for parking space.
These types of developments require a significant amount of advance planning before the first shovel is used. At the outset, an attorney will need to determine whether existing zoning laws will allow such a project. Once that hurdle has been cleared, legal counsel can review prospective financing packages from lenders in order to ensure that there are no provisions that could prove to be problematic in the future.