FLAP data centre markets to grow by 15%, according to CBRE data

FLAP data centre markets to grow by 15%, according to CBRE data

Key European data centre markets are set to grow by 15% in 2018, driven by a flurry of activity in London, Frankfurt, Amsterdam and Paris (known as FLAP) markets, according to research from CBRE.

The start of the year saw heightened activity in the FLAP markets, where there was 36MW of take-up – the highest figure for any first quarter period and up 35% on Q1 2017.

Analysis from real estate advisor CBRE showed an expected further 147MW of new supply which will be delivered across these markets in 2018, taking the total of new capacity there to 187MW – up 15% on 2017.

An increased level of supply has seen vacancy rates come back in-line with the equilibrium of 20% following two years of lower rates. To keep this rate or below, there will need to be an average of 39MW take-up per quarter (117MW overall), CBRE said.

Mitul Patel, head of EMEA data centre research at CBRE said: “2018 provided the start to the year that we had projected, with significant activity on both the demand and supply-side. We expect to see this continue and will see an upturn in demand from enterprise companies, such as those from the automotive sector which begin to execute strategies around automation.”

“Consequently, access to the European markets remains a priority for developers and this will drive further announcements of new companies entering the European markets throughout 2018. We may also see significant platforms come to market as investors look to cash in on the high barriers to entry that are driving up pricing.”

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