Global property advisor reports, that european data centre take up bucks the recessionary trend

Data Centre take-up has risen by 12 per cent year on year across Europe, according to new research from global property advisor CBRE. This rise occurred following a strong final quarter of transactional activity although also acknowledged was that widespread economic uncertainty had resulted in unpredictable demand patterns during the year.

CBRE recently published a report that had a closer look at the data center markets in London, Frankfurt, Paris, Amsterdam, and Madrid. Here you can find an excerpt of the summary, below you can read or download the report in full length.

  • 2012 has proven to be a difficult year for business confidence with four of the five cities under review in this report experiencing recessionary periods. Heightened occupier caution towards new spending resulted from the unease although the tone in the market remained positive.
  • The unsettled economic environment has led to unpredictable new demand and transaction levels. Extended negotiation periods and changing customer requirements have become more common, although in general demand levels have held up well. The final quarter of the year illustrated the changeable market conditions where take-up was the highest quarterly total for three years following two quarters of slower activity.
  • At year-end total colocation take-up showed a 12.1% increase compared to 2011. The technology sector has again been the driving force behind new demand with organic growth of new and established companies requiring data centre support. Interest in cloud has grown aggressively and now forms a significant revenue source for operators.
  • 2012 was again a strong year for data centre demand in the Amsterdam market where total take-up reached record levels for the third consecutive year. London and Paris also saw improvement in transaction totals with London’s wholesalers in particular seeing strong activity. Total take-up of wholesale space in London was the highest recorded, more than double that of 2011.
  • On the supplier side, the biggest story of the year was the £716 million acquisition of the Sentrum portfolio by Digital Realty in the UK. The purchase was one example of an increase in operator activity in 2012. Portfolio expansion in new and familiar markets was high on the agenda for the main operators with the result being a record annual rise in supply of 106MW.

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