European colocation market to grow by 20% in 2017
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.