In recent months the large scale IT and web companies have begun to deploy their infrastructure in markets away from Amsterdam, which they had been very active in, to the likes of London. Consequently, London had most take-up across the key European FLAP – Frankfurt, London, Amsterdam and Paris – markets for the second consecutive quarter.
The knock-on effect of the IT infrastructure companies moving across markets is affecting overall market dynamics. For instance, pricing is becoming more disruptive as operators are seeing proof that having IT infrastructure firms in a facility will actively draw in new enterprise customers. As such, securing these deals is increasingly competitive.
Andrew Jay, EMEA head of data centre solutions at CBRE, said, ‘IT infrastructure companies, at present, are dominating the European data centre market. We’ve seen overall demand dynamics mirror what these firms are doing. The implications are wider as well, operators are now seeing proof that deploying an on-off ramp to the cloud in your data centre will attract enterprise customers so securing the IT Infrastructure providers to your premises is becoming vital.
‘Separately, the issue of data protection has developed significantly since the Safe Harbor ruling. Such concerns have been important in keeping demand strong in Frankfurt, exemplified by Microsoft’s announcement of its partnership with Deutsche Telekom and the expectation is that this theme will persist in the coming months with some markets gaining significantly.’
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