European data centre rack pricing increases

The Data Centre Price Tracker survey of 14 European countries reveals that average per-rack pricing rose by 8.5 per cent during 2008.

In all countries covered Data Centre operators are raising prices as newly-furbished space is introduced to the market, and are introducing new types of rack product which reflect the costs of providing enhanced power which increases the average price per rack.

“The main price determinant for data centre operators is now the cost of power, rather than the actual physical space cost,” comments Margrit Sessions, managing director of Data Centre Price Tracker sponsor Tariff Consultancy.

There remains a large difference in average rack prices per country in the 14 country survey. Italy remains the lowest average priced country for rack space (€545 per month), followed by Germany (€673 per month). By contrast, Denmark (€1,300 per month), Switzerland (€1,040 per month), France (€1,029 per month), and the UK and Austria (both on €1,024 per month) have now the highest average rack prices in the survey.

Looking forward into 2009 it is likely that there will continue to be moderate price increases in most countries. Data centre operators continue to report strong customer demand despite the downturn, as enterprises continue to outsource their IT infrastructure to a third-party provider as the cost of managing their in-house facility continues to rise.
The cost of recently announced new build facilities ranges from €33 m (TelecityGroup's development in Stockholm) to €110m (Equinix's development in London), and underlines the scale of the investment now required.

Industrial electricity costs continue to rise - with an increase in price of more than 20 per cent during the past 12 months. Overall, France, Sweden and Switzerland have consistently the lowest industrial electricity prices in Europe; Italy, Spain, and the UK have among the highest industrial electricity rates. Industrial electricity pricing is projected to continue to be volatile in the months ahead.

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