LIVE BLOG: JLL’s Andy Cvengros at the Chicago Data Center Summit & Expo

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JLL’s own Andy Cvengros (left) is participating in a panel discussion on data center development as a part of the 2nd Annual Chicago Data Center Summit & Expo at the Museum of Science & Industry. Other panelists include Server Farm Realty’s Dan Flynn, DRT’s Stephen Verp, Exuinix’s Lou Najdzin, Ubiquity’s Sean Farney and Maktub Development’s Gihan Foreman.

Here’s a minute-by-minute recap of the conversation:

2:12 p.m. — Verp on what’s driving site selection: “we tend to go where there’s big GDP and large populations. Then we look at fiber and power and decide whether we’re going to be city or suburbs or both.”

2:14 p.m. — Cvengros on enterprise users: “you’re seeing a big trend toward outsourcing. When you look at their architecture, it’s application-driven. In terms of site selection, they’re putting it where they need to … As close to their users as possible.”

2:16 p.m. — Foreman on the incentives landscape: “We look for buildings in a TIF district, which can account for up to 20% of development costs. You have to have the land and the building and the fiber, but the free money makes it a lot more palatable.”

2:20 p.m. — Flynn: “Latency is still very relevant and it will continue to be relevant for the next several years.”

2:22 p.m. — Cvengros on what’s driving site selection: “Personal property tax rates are becoming increasingly important.”

2:26 p.m. — Najdzian: “There’s a trend that’s going to affect us, and it’s the ‘Internet of things’ (aka the Industrial Internet) and its going to stand our ability to store all that data on its head.”

2:30 p.m. — Verp: “You’re seeing a lot of (co-lo) companies going into secondary and tertiary markets and you can build a great business that way.”

2:33 p.m. — Verp: “it’s all about scalability, flexibility and adaptability. You need to be very nimble to serve the customer.”

2:35 p.m. — Cvengros on clustering: “you see DRT move to Franklin Park (Illinois) and you see Microsoft move to Northlake (very close to there) and people get excited about it. There’s definitely a bandwagoning effect.”

2:39 p.m. — Farney: “I believe passionately that we’re ready to democratize data centers and not just put them in 10 cities. We need to be closer to customers and I think we’re moving in that direction.”

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