London data centres top position buoyed by price premium
The London data centre market is set for ‘renewed growth’.
A report from Tariff Consultancy Ltd., ‘The London Data Centre Market: 2010 to 2015’, analyses new-build developments in London, recent history of the segment, key customer growth, the increase in high density space, key types of managed services together with a five-year forecast for raised floor space and revenue.
The report also contrasts the developments within the London area with data centre build outs in the rest of the UK and with other key cities in Europe. Its key findings include:
- London remains the largest single data centre market in Europe and is forecast to have 215,000 square metres of raised floor space by the end of 2010.
- The London data centre market accounts for around one half of the total UK carrier neutral data centre market as of the end of 2010.
- For the first time it appears that the build-out of substantial new campus-style data centres outside the London area which will soon overtake the London market in total space.
- Into 2010 London has seen new developments by major players such as TelecityGroup, Equinix, and Telehouse Europe which are now coming on stream which has helped to meet customer demand, but the report suggests, has resulted in some softening of prices.
- By end 2015, the report forecasts that total raised floor space in London will increase to 300,000 square metres, mainly as the result of development of adjacent sites by existing data centre providers, with the percentage of London space as the UK total to fall to 42 per cent of the market at the same date.
- Also by end 2015 although data centre space outside London is forecast to rise to 410,000 square metres of raised floor space, London will still account for the majority of revenue as a result of higher pricing per square metre.
“The market for London data centre space is increasingly being used for specialised applications which are either high density,” says Tariff Consultancy Ltd managing director Margrit Sessions, “or where customers are prepared to pay a premium for geographical proximity in the London area.”