European data centres to reach record supply growth in 2017
Colocation supply capacity across Europe is set to reach a record high by the end of 2017.
A new report from CBRE examining the first half of 2017 has revealed that colocation data supply capacity from the European data centre hubs of London, Paris, Frankfurt and Amsterdam, will reach its biggest growth in history, with close to 20% of all supply coming online this year.
The first half of 2017 delivered a combined supply growth of 74MW, with a further 120MW of supply expected to be brought online by the end of 2017.
One sixth of all colocation supply in the last 12 months have been brought online.
The report suggests that this growth signifies a “strong confidence towards future take up” across Europe.
Looking at take-up across Europe, London was the top performing market with a “notable number” of transactions singed by enterprise and tech companies, providing a “balance to the continued wave of demand from the hyperscale cloud companies.”
70% of take-up in Amsterdam came from sales in retail facilities, while Frankfurt and Paris both saw an upswing in demand from hyperscale cloud companies.
Mitul Patel, Head of EMEA Data Centre Research, EMEA at CBR, said: “Confidence in the European colocation sector is higher than ever and Q2 delivered another blockbuster performance. The cloud companies that are driving recent growth in Europe show no signs of decelerating in their procurement of colocation space and developers are responding in-kind with an unprecedented level of build activity.
“The continued increase in our use of IT and reliance on the digital world, and thus the increased need for processing power, has led to record-breaking levels of new supply and take-up since 2016.
“In context, in the six quarters prior to 2016 we saw 90MW of new supply and 91MW of take-up. In the six quarters since, we have seen 204MW of new supply and 212MW of new take-up.”
You can read the full report at www.cbre.com.