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The Tariff Consultancy Ltd (TCL) report Data Centre Pricing UK – 2015 to 2020 is based on a survey of some 150 Data Centre providers and includes a survey of 315 Data Centre facilities across the UK – with many Data Centre providers having multiple facilities.
This report provides a unique overview of Data Centre pricing in the UK market – which is currently the largest in Europe by raised floor space and has amongst the highest average rack space pricing per month of over GBP 665 (Euro 939) per month per standard retail rack of space. (The average UK rack space rate is currently the fourth highest in Europe behind Austria, Denmark and Switzerland – but higher than the other key European markets of France, Germany and the Netherlands).
The TCL Data Centre database can be segmented by location and the 3 main types of Data Centre provider segment used in this report. The Data Centre segment types used are in this report to distinguish between facilities are whether the Data Centre is Carrier Based, Carrier Neutral or a Premium Data Centre provider are shown below:
i) A Carrier Neutral Data Centre provider for the purposes of this report - is defined as being a company, which is not part of a domestic network provider and has multiple telecoms networks from a facility
ii) Carrier Based Data Centre provider for the purposes of this report - is defined as being a subsidiary of a telecoms provider and is able to provide a limited choice of telecoms networks from a facility.
iii) A Premium Data Centre provider for the purposes of this report - is defined as being able to support high-density power per rack combinations of up to 20 kW or above.
The pricing information in the report is obtained in confidence from the Data Centre companies themselves and is used to derive an average market price for rack space or per square metre overall and for the Carrier Based, Carrier Neutral and Premium Data Centre sectors.
150 Data Centre providers and includes a survey of 315 Data Centre facilities, selected key data centre players in the UK covered include:
AlphaDEX, Aimes Grid, Ark Data Centres, BT, CWCS, CenturyLink, Cobalt DataCentre, Colt Telecom, Datum Data Centre, Digital Realty, Equinix, Everest Data Centre, Eurohub, Fast2Host, Global Switch, Gyron Internet Ltd, iRack, infinity SDC, Interoute, Interxion, Iomart, Level 3, London Data Exchange (LDeX), Netwise Hosting, Next Generation Data (NGD) Data Centre, Node 4, Onyx Data Centre, Portal Data Centre, Pulsant, SCC, Sheffield Data Centre, ServerHouse, Sungard, TelecityGroup, Telehouse Europe, Telstra Global, The Bunker, Verizon Business, Virtus Data Centre, Vodafone & Volta Data Centre.
TCL identifies the following key UK Data Centre trends from the report:
1) Increasingly, new Data Centre facilities are becoming flexible Data Centre facilities which can cater for a wide range of power densities and price points, with high power or low power requirements
2) More and more Data Centre facilities are being built outside of the London/M25 area, with the London/M25 region now accounting for 46 per cent of all UK Data Centre space
3) The UK Data Centre market remains the largest European Data Centre market by space and power – it also has average UK market pricing that is higher than the larger markets in Europe, including Germany, France & the Netherlands
4) Average UK Data Centre retail rack space pricing is currently Euro €939 per month, but there is a wide spread of pricing available in the market, ranging from Euro €500 per month up to Euro €1,600 per month – with the highest pricing available in the London area
5) New Data Centre space continues to be added in the London/M25 area, but the main growth in new space is coming from outside the London/M25 area which benefits from lower land costs – as a result price sensitive customers are migrating from the London area to regional areas.
6) New facilities are available across many cities throughout the UK, with key cities such as Slough and Manchester developing their own Data Centre ecosystem with a range of customers and partners being present.
7) Pricing in the UK remains competitive, with the average UK market pricing disguising considerable variance between regions and wholesale Data Centre providers offering low price points in particular outside the London area.
TCL forecasts that UK average Data Centre pricing will increase by around 3 per cent over the five-year period from the end of 2015 to the end of 2020. Key UK Data Centre providers have been reducing their pricing and users are now faced with a wide range of choice from regional Data Centre clusters using different price points.
Relatively few UK Data Centre facilities are being built on a speculative basis, as Data Centre providers require anchor tenants in order for the new project to become viable. As the UK Data Centre market reaches maturity, the Data Centre provider is finding a limit on both price increases and also the average customer power being used.