Financial Services Firm Buys Stream’s Texas Data Center

Stream Data Centers has sold a 30,000-square-foot data center in Richardson, Texas, to a financial services firm. The company did not name the buyer, but Dallas Morning News reported it was an affiliate of TD Ameritrade, citing local tax records.

Buyer of the Texas data center retained Stream to provide facilities management services at the site. The data center’s critical power capacity is 7.2 megawatts.

This is what is called a Stream Private Data Center. They are purpose-built but smaller than the company’s single-tenant powered-shell product and can be either single- or multi-tenant. Stream has other similar projects in the Dallas, Houston, San Antonio, Minneapolis, and Denver markets.

Richardson is part of the Dallas-Fort Worth data center market. Analysts at the commercial real estate firm Jones Lang LaSalle characterized it as a market with high rate of absorption of data center inventory in the 2014 North America data center market report.

The report even said there was a “small window” in 2014 where supply of data center space was in deficit, therefore data center providers have been “racing” to build out space.

Drivers of the rising demand in this particular Texas data center market have been workforce growth, corporate headquarters relocations, and regional office expansion in the region, according to JLL.

Insurance industry is responsible for the biggest portion of overall demand – 35 percent – followed by tech companies, financial services, and the healthcare industry, in that order. Banking and financial services companies are responsible for about 20 percent of demand in the market.