Data centre real estate agents CBRE have released their authoritative second quarter European data centre industry overview.
As usual it’s really quite a detailed read; the full report is available here: http://bit.ly/NLkDYf. However, I’m pleased to advise the report this quarter includes a guest column by Colo-X on colocation pricing on pages 13 and 14!!
Key highlights of the report are as follows:
Total data centre take up (demand) in the European Tier1 cities was 7,345 sq m, or 9.3MW in the second quarter, or year to date is 22,685 sq m, 31MW, a 29% increase on 2011, “an impressive performance given the economic uncertainty” say CBRE. The CBRE forecast for 2012 is total demand of 40, 135 sq m, which is what the market achieved in 2011. Please note “total take up” includes both wholesale and retail demand.
On the data centre supply side CBRE note over the past 12 months that new wholesale supply is up by 38,000 sq m or 53MW (of which 75% is located in London) and that retail supply has increased by 18,000 sq m, 25MW. In the second half of 2012 CBRE forecast we will see a further 33,000 sq m of new retail supply, or 50MW, coming on stream, a huge increase in the supply compared to what we’ve seen over the past few years.
CBRE estimate typical retail demand is some 30,000 sq m pa whereas supply has been growing at only 18,000 sq m pa. Clearly though the rate of retail expansion in the second half of 2012 shows a marked increase in the supply pipeline.
Colo-X Comment
The picture from CBRE fits with our own views on the market that the supply pipeline is in good health. Indeed it has to be said the supply pipeline for retail colocation is going through a step change, with second half 2012 alone seeing almost twice as much new retail supply as we have seen in a typical year. Furthermore, we continue to look closely at the big increase in supply from the wholesale sector. As we wrote earlier this year (http://bit.ly/waCAHi) many wholesale operators are now offering their product in a form that looks increasingly like a retail colocation product, either directly or via resellers. This means that not only is there a lot of new retail supply coming onto the market but that we also have this potential source of supply of repackaged wholesale capacity. All in all therefore an encouraging picture.
As ever we have an up to date list of colocation deals and offers – some of which we can publish and others we can only discuss – so please do contact us directly for the latest availability, pricing and offers.