In the 2000s, the telecom industry focused heavily on broadband and wireless network construction. In the 2010s, well over half of all households and businesses now have broadband or wireless service. As a result, the networking industry's growth this decade will move back indoors - to the data center, which is already creating new demands for higher speed connections, advanced networking architectures, and products that meet the low latency needs of large enterprises and government agencies, not the long distance requirements of telecom carriers.
At the same time that network equipment suppliers are growing in the data center, data center REITs are adding new space while traditional office REITs face a slow and mature market. As a result, the data center is one of the few technology sectors that offers opportunities for both the growth and dividend investor.
In this blog, I'll look at the data center REITs, network equipment manufacturers, co-lo providers, and everyone in the data center supply chain. The emphasis will be on microeconomic analysis more than chasing down next quarter's EPS. While written for investors, I'm also providing product and company depth that should be useful for the industry as well.