DLR - Mizuho sees 'beat and raise' 2021 for data centers urges buying the dips

Mizuho's first Data Center Series gathered commentary from management teams and industry experts, and set up its 2021 preview for the sector - where it expects the earnings outlook should stay attractive. That upbeat view is driven by four takeaways from the series, serving as catalysts into 2021: First, enterprise demand for outsourcing data center infrastructure is set to rebound after a pandemic pause. That demand will likely be a mix of traditional co-location and hybrid cloud solutions, analyst Omotayo Okusanya writes. And hyperscale pricing should stabilize in the U.S., given low vacancy in key hyperscale markets such as Northern Virginia. New lease rates have been marching up all year after hitting a Q1 bottom. Third, cap rates should go lower in a sector "awash with capital," and with buyers re-emerging into a world where due diligence and physical asset inspections are possible again. Wholesale/hyperscale data center cap rates are

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Mizuho sees 'beat and raise' 2021 for data centers, urges buying the dips