CB Richard Ellis, the world's leading real estate advisor, has announced that the total take-up for 2009 in the European Data Center market was 48,660 m² across the five tier 1 markets. This was a significant reduction on the 2008 total of 147,380 m². The most notable decline came in corporate activity, which accounted for 59% of total take up in 2008 but just 18 per cent in 2009.
Andrew Jay, Head of Technology Practice Group, CB Richard Ellis, said: One of the most interesting developments in the market over the past year is the fact that the market has reached an equilibrium and become self regulating in terms of supply and demand. This is exceptionally unusual for any real estate sector and unique for the data center market."
2009 saw an increase in Carrier Neutral stock with notable rises in Paris and Amsterdam. Supply increased in Paris by 23% (82,440 m² to 101,180 m²) as new facilities were brought to market to ease the pent up local demand which was a consequence of a lack of new supply throughout 2008. Over the coming year it is expected that further new supply will come to market in London, Paris, Amsterdam and Frankfurt.
The Green Agenda
Andrew Jay, Head of Technology Practice Group, CB Richard Ellis, said: "Although 2009 was a tricky year in terms of the wider economy, difficult economic conditions have provided a catalyst for the adoption of green technologies within the data centre market. In essence, in an attempt to cut operational costs, data centre owners are investigating solutions that would enhance the energy efficiency of their data centers. In the UK, a further driver in the desire for energy efficient products was the introduction in April 2010 of the UK Government's Carbon Reduction Commitment."
Two examples of innovative thinking regarding green technologies are Telehouse's heat system in its new London Docklands facility where waste heat will be used in a district heat network for the local community. In addition a solar array has been designed to provide 6,000kwh of power. In France, TelecityGroup's recently built Paris data center uses waste heat from the facility to warm a 'climate change arboretum' in a greenhouse built on-site, allowing scientific research.
Andrew Jay concluded: "There are signs that data center operators, investors and IT integrators are optimistic with regards to prospects for the industry in 2010. One way in which that optimism manifests itself is the greater frequency with which optimistic financial news surrounding capital raising issues continues to be reported.
"Evidence suggests that there is brisk investment activity across the European data center markets, and notably a growing acceptance of outsourcing data centres in Central and Eastern European markets, for example in Bucharest. This appears to be the next growth sector in the market."