European Data Center Colo market growing steadily
ABSTRACT
It is fair to say that hardly any market moved rapidly in 2009. Overall, the data center market despite the global economy has been steady, albeit less than usual steady. The European data center market seems to mirror the North American market, however
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European Data Center Colo market growing steadily
Written by Bob DeCoufle / Datacenter Journal
Monday, 11 January 2010
It is fair to say that hardly any market moved rapidly in 2009. Overall, the data center market despite the global economy has been steady, albeit less than usual steady. The European data center market seems to mirror the North American market, however the differences may become more apparent as the Carbon Reduction Commitment program goes into effect in April across the EU.
These points amongst others were recently defined in a report published by CBRE commercial real estate that focuses on the European Data Center market.
Similar to North America, the inventory of available data center has nearly evaporated in comparison to the glut of space available from the dotcom boom days. According to CBRE’s report, collocation expansion continues to move but cautiously which is very similar to the market in North America.
The North American colo market is seeing a bit more expansion occurring on average in comparison to our neighbors in the EU. Major expansion in the EU are far and few in between during the final quarter or 2009. The more notable expansions appear to be those companies that are well established and can easily acquire the finances to expand.
According to a report from IDC, an analyst group, the EU colo market remains positive with forecasts of a compound annual growth rate of some 23% from end of 2008 to 2013. CBRE notes that the next 12-18 months will show an increase in activity of new facilities to catch up with demand. The lack of spending in 2009 and corporate reductions will continue to help colo market growth throughout Europe.
