Tuesday, October 17, 2017

Europe’s major data centre colocation hubs hit nearly 1000MW of supply

Q1 of 2017 ends strong with London, Frankfurt, Paris and Amsterdam set for more growth throughout the year. 

Europe’s major four colocation hubs of Frankfurt, London, Amsterdam and Paris have experienced a 27% growth in uptake in Q1 2017, when compared to the same period the year before.

An increasing demand for data centre power and an increase in activity by hyperscale giants and other cloud services providers was, according to CBRE, behind the high growth rate.

The combined four markets registered 26.6MW of take-up and 38MW of new supply in Q1 2017.

London was responsible for 17.5MW of take-up, 60% of the European total, showing no real impact from Brexit.

The market saw significant further activity by the hyperscale cloud players, which resulted in London’s second-largest quarterly total on record.

In contrast, researchers highlighted that Amsterdam (3.5MW), Frankfurt (3.2MW) and Paris (2.3MW) were relatively quiet in the first quarter.

Researchers have predicted that an expected increase in activity from corporate and enterprise occupiers as the year goes on will provide a more balance to take-up.

Andrew Jay, Executive Director, Data Centre Solutions, at CBRE said: “We predicted a strong 2017 in the European markets and Q1 has certainly delivered for us.  Given the momentum built up in 2016 we were not surprised to see a strong start to the year.

“The key question is whether 2017 will surpass last year’s record breaking 155MW. Our view is that we will have another really strong year of at least 100MW which is astonishing considering that the record take-up prior to 2016 was 78MW.

“Q1 came very close to reaching a milestone of 1000MW of supply across the four markets; ending the quarter on 996MW. We expect a substantial amount of further new supply to come on during the course of the year, including new entrants in Amsterdam, Frankfurt and London.”