23 August 2017
| Natalie Bannerman
London, Paris, Frankfurt and Amsterdam - the data centre hubs of Europe - are set to experience a 20% increase in new colocation supply in 2017.
According to a report by global real estate advisor, CBRE,
the first half of 2017 saw 58MW of supply growth, with an
additional 120MW of supply predicted to be brought online by
the end of the year, pushing vacancy rates from 14.9% to 19.7%
in the last 12 months.
Speaking to Data Economy, Mitul Patel, head of EMEA data
centre research at CBRE, 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.
With a combined total supply of over 1000MW, corresponding
to roughly 500MW of retail let power, 300MW for wholesale let
and 200 MW of available power.
The report says 173MW has been brought on by providers in
the last 12 months, which is in stark contrast to the 53MW
brought on from the 12 months prior. The opening of
Digital Realty’s new 12MW Amsterdam facility and
Gyron’s 10MW expansion of its London footprint are
key drivers in this change.
"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," says the report.