Some decisions delayed due to uncertainties, particularly Brexit and impact of GDPR.
London – 9 March 2017 - The latest Colocation Market Quarterly (CMQ) from BroadGroup Consulting shows strong demand for data centre space in the four Tier 1 European locations during the final quarter of 2016. Amsterdam has performed particularly strongly, with co-location partners continuing to build new capacity in the city.
The report shows Frankfurt remains strong while Paris has slowed slightly. Some fascinating findings regarding London as results from listed providers confirmed there has, so far, been relatively limited impact on the London market from Brexit.
However, the report indicates some marginal impact as the UK is increasingly seen as a location focused on UK data centre requirements. UK commitment from the hyperscale providers, not just in data centres but in broader UK investments in offices and logistics capabilities continues.
Commenting on what this means for data centre investors, Steve Wallage, managing director of BroadGroup Consulting points to investors being cautious about the UK, reflected in commercial property markets.
“While demand is strongly driven by cloud - both hyperscale cloud players and smaller cloud player - some decisions have been delayed due to uncertainties, particularly Brexit and impact of GDPR,” commented Wallage.
“In tandem we have seen new companies entering Europe from Middle East and Gulf States and Africa into Frankfurt,” he continued.
For those investors looking at European alternatives outside the UK - which remains the largest data centre market in Europe - there are many options and eager investment agencies. While Dublin and Amsterdam are potential choices, the Nordics, Luxembourg and Frankfurt, are all looking to compete for this business.
However, Brexit and the implantation of GDPR could strongly influence investor decisions.
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BroadGroup is an Information Media Technology and Professional Services company. Established in 2002, BroadGroup achieved rapid recognition and growth through delivering quality research and insight in a number of niche and emerging areas of the telecommunications and technology sector. Since founding, the Datacentre and Cloud practice has been the main focus of the company. BroadGroup has now become the leading international research and consulting group in this area, through three business lines: consulting, market reports and events.
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