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This report provides a unique overview of key trends impacting the London Data Centre. The report includes analysis of new build developments in London, recent history of the segment, key customer growth, the increase in high density space, key types of managed services together with a five year forecast for raised floor space and revenue. The report also contrasts the developments within the London area with Data Centre build outs in the rest of the UK and with other key cities in Europe.
From the London Data Centre Market - 2010 to 2015 - report TCL identifies the following key trends:
1. London remains the largest single Data Centre market in Europe and is forecast to have 215,000 square metres of raised floor space by the end of 2010
2. But the London Data Centre market accounts for around one half of the total UK Carrier Neutral Data Centre market as of the end of 2010
3. But for the first time it appears that the build out of substantial new campus style Data Centres outside the London area which will soon overtake the London market in total space
4. Into 2010 London has seen new developments by established players such as TelecityGroup, Equinix and Telehouse Europe which are now coming on stream which has helped to meet customer demand but has resulted in some softening of prices.
5. By the end of 2015, TCL forecasts that total raised floor space in London will increase to 300,000 square metres chiefly as the result of development of adjacent sites by existing Data Centre providers - with the percentage of London space as the UK total to fall to 42% of the market at the same date.
6. By the end of 2015 although Data Centre space outside London is forecast to rise to 410,000 square metres of raised floor space - London will still account for the majority of revenue as a result of higher pricing per square metre.
Says TCL Managing Director Margrit Sessions, "The market for London Data Centre space is increasingly being used for specialised applications which are either high density or where customers are prepared to pay a premium for geographical proximity in the London area."
Customer services which are dependent on network or content connectivity are attracted to the London Data Centre as a means of using multiple providers and being part of a wider ecosystem. "But the London Data Centre still faces challenges, the prime one being the shortage of suitable connected space with power transportation links in the capital, continues Margrit Sessions, "and planning consent for new build facilities is increasingly difficult to obtain. This means that new space for wholesale requirements will be limited and will more and more be sourced from outside of the London area."
But despite the problem in finding suitable new space for Data Centre developments the London Data Centre will continue to prosper as pricing increases will reflect the cost of new facility builds. Existing providers in the London area will look to renovate and upgrade their current facilities to obtain premium price levels.
Outside the London Data Centre market raised floor space will be more attractive as a wholesale proposition to integrators, service providers, hosting companies and 3rd party resellers who will find single storey space in a campus-style environment at a lower cost per square metre which do not require high numbers of content or network connectivity.