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Lack Of Data Centre Space In London Points To Regeneration Of Data Centre Market In European Cities

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London, 1 March 2005 – A sample survey of companies participating in the forthcoming DataCentres Europe event (www.datacentreseurope.com) reveals that space in facilities in London – one of Europe’s key hubs – is now at a premium, with little capacity available. Data centres in some European cities still have an excess of space, and some industry commentators believe that customers may begin to see the advantages of locating in other European cities.

 “With the London data centre market close to being sold out again for the first time since 2000, it will be interesting to see whether this will kick-start the markets across Europe at long last,” comments Tim Anker, founder of The Colocation Exchange . ”Locations such as Amsterdam, Frankfurt and Paris may stand to benefit from frustrated demand found in London.”

It is also unlikely that, due to space and power restrictions, current operators will open new London facilities, or that new companies will try to enter the London Data Centre market. According to Mike Tobin, CEO of the independent data centre operator, Redbus Interhouse, “The barriers to entry are significant. It is incredibly difficult to build new data centres in London now, to have the right level of power available and to have the connectivity partners to create sufficient market competition to ensure that the customer gets the best deal.” He also believes that, with space in London and also in Paris becoming less available and power charges increasing, the market is likely to see some increase in prices this year.

Over the past two years, data centre providers have been quietly increasing their revenues and building up strong businesses. Redbus Interhouse estimates that data centres are growing at around 30% per annum and other operators quote figures near to this mark. Growing demands for space from corporate customers, as well as the needs generated from media/internet convergence, have generated a whole new revenue stream and enabled operators to fill their facilities despite the downturn of 2001.

Telecity is one such provider, and it has found that the new companies coming into their facilities require more solutions, which creates additional revenue opportunities. When talking about these new companies, Matthew Gingell of Telecity comments, “Content and media companies increasingly require the data centre operator to support much more of the infrastructure, providing services such as multi-home IP, backup and recovery, network security and monitoring solutions”.

The European Data Centre market will be addressed in detail at the industry event Data Centres Europe 2005, which takes place on 28th and 29th April in London.

Event sponsors include Tyco Electronics, Corning, The Bunker and The Colocation Exchange. For the full programme visit www.datacentreseurope.com  where it is also possible to register for Data Centre News – a free monthly publication through to the event.