A quarterly report recently published by global property market intelligence provider CBRE has revealed that London has seen one of the largest increases in demand for data centre floor space among European cities. To be more precise, the report revealed that, during 2013’s third quarter, which ran from the beginning of July to the end of September, five crucial European markets, including… not only the British capital but also Frankfurt, Amsterdam, Madrid and Paris, saw the shifting of a total of 8,090 square miles of data centre floor space.
Success for the UK has encouraged success for London
CBRE claimed that growth had been especially fast in London and Frankfurt, as the two cities were especially successful in assisting corporate end users that wanted storage space from third party companies. CBRE noted that London’s increase in data centre floor space demand was encouraged by recent enhancements to the UK’s economic prospects. Since January 2013, London has seen the sale of 8,795 square miles of floor space, 70% of which is used by colocation clients. CBRE cited Frankfurt as having benefitted as it was one of Europe’s most significant connectivity hubs. Colocation has increased year-on-year by 23% in the city and most of its new data centre occupiers have come from the sectors of technology, media and communications.
Encouraging developments that could bode well for the future
CBRE’s executive director of Europe, the Middle East and Africa Data Centres, Andrew Jay, described the increase in data centre demand as “encouraging” considering the sluggish performance of most European economies since the recession’s onset. He added: “Some of this new demand is now translating into confirmed transactions. Although there is an emerging upturn in new business for operators, the markets remain largely well balanced”. He continued: “Last year’s record new build activity has meant the focus remains portfolio consolidation and the pursuit of expansions plans into new geographies.”