Intelligent Data Centres Issue 14 | Page 29

EDITOR’S QUESTION WHAT IS DRIVING THE BOOM IN EUROPEAN DATA CENTRES? t is undeniable that there has been a dramatic increase in European data centre expansion and ultimately, investment. The vast majority (92%) of debt and equity investors surveyed in the following report, European Data Centre Investment Outlook: Opportunities and Risks in the Months Ahead, expect the overall value of investment into Europe’s data centre infrastructure to increase over the next 24 months, according to research commissioned by DLA Piper. Previous Brexit uncertainty has affected data centre investment. All respondents agreed that it had negatively impacted the data centre infrastructure market since June 2016, with 56% of equity investors going as far as to say that the negative impact has been ‘significant’. Organisations use data centres for the remote storage, processing and distribution of large amounts of data and are currently estimated to use 3–4% of world’s power. According to the report, investors anticipate an investment increase in data centres of between 10% and 29% over the next two years. The majority of respondents chose Germany as the European country that will see the biggest growth in data centre project investment over the coming months. I Data from Acuris in the report shows that the first half of 2019 saw a notable rise in investment – with €1 billion flooding into the data centres market in H1 alone, compared with a total of €1.5 billion for the whole of 2018. www.intelligentdatacentres.com In an increasingly interconnected world, with an ever-expanding need for data storage facilities, respondents are expecting rent charges to increase for data centres with superior technology, with over a third expecting the increase to be 10% or more. Investors also expect the UK to see some of the biggest investment growth in the industry, followed by the Netherlands and France. We hear from industry experts on how they predict the European data centre sector will continue to develop over the next couple of years and the factors that are driving the development. Issue 14 29