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London, 16 November 2018 – Results from the 14th quarterly Colocation Markets report published by BroadGroup suggests a sustained healthy market for the data centre sector across the UK and Europe.

Colocation Markets Quarterly, for Q3 2018 reveals that data centre supply remains very strong in the Frankfurt – London – Amsterdam – Paris (“FLAP”) market, although a slight lull in Q3 due to reduced activity over summer period. Existing major players in Europe – such as Equinix, Interxion, Digital Realty and Global Switch – are all expanding strongly in FLAP markets.

What is exceptional however which the report highlights is market entry in Europe by US players – in particular EdgeConnex (in Poland), CyrusOne, CloudHQ and Iron Mountain bringing a completely new wave of investment.

As just reported in Data Economy, the current sales process of DigiPlex is believed to have attracted more than 100 expressions of interest, with a mix of trade and financial buyers, European, US, and Asian firms.

BroadGroup Consulting have commented that given some of the plans covered in the report, there is potential for a significant spike in 2019 supply. However the report remains optimistic:

“We are optimistic that this will not lead to supply/demand imbalances given the level of pre-selling and funding dependent on pre-sales, modular/phased builds, and level of demand, particularly from hyperscale cloud.”

CMQ warns that power availability across the FLAP markets is becoming more problematic especially into next year, in contrast to the Nordic markets who are aggressively marketing carbon neutral power supply with long term contracts.

CMQ provides metrics covering key performance indicators including supply, demand, pricing, market share for key players, key changes over the quarter and other commentary for the FLAP markets and is available by subscription.

Colocation Markets Quarterly

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