European Data Centres MarketView

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1 European Data Centres MarketView Q3 214 CBRE Data Centre Solutions SUPPLY +12.% y-o-y Sep 14 AVAILABILITY +8.% y-o-y Sep 14 COLOCATION TAKE-UP +44.5% y-o-y Sep 14 COLOCATION TAKE-UP 59% AHEAD AS CLOUD DRIVES EUROPEAN DATA CENTRE DEMAND IN Quick stats AS AT QUARTER Supply Availability Colocation take-up quarterly Colocation take-up annual YTD Headlines Colocation take-up 59% ahead at Q3. Strongest demand in Amsterdam with take-up already 54% higher than in all of 213. Take-up in Frankfurt 9% higher than in 213 New development drives data centre availability to reach a historic high. In this issue Executive Summary Supply & Availability Take-up & Demand Market Focus London Frankfurt Paris Amsterdam Madrid Key Statistics Definitions 779MW 149MW 18MW 56MW EXECUTIVE SUMMARY Unusually strong letting activity in the third quarter has resulted in total colocation take-up for 214 reaching the highest level recorded at this stage of the year since 28. The total amount of customer power sold this year is now 56MW, 59% higher than the equivalent period of 213. Connectivitysensitive organisations continue to form the principal sources of new and developing demand. As at Q3 cloud service providers are the most active group being responsible for over 4% of colocation take-up this year. So far in 214 colocation take-up has been highest in Frankfurt and Amsterdam. In Amsterdam a total of 17.4MW has been sold so far this year, 179% more than at the Q3 stage in 213. Colocation take-up in Frankfurt has already surpassed the total recorded for all of 213. Colocation take-up for 214 has now reached 16.6MW, 9% more than the 8.7MW sold during the equivalent period in 213. Overall market availability reached an unprecedented level in Q3 following the addition of two significant new data centres to supply. At the end of the third quarter 149MW of customer capacity was available with London representing 54% of this total. In 214 an additional 69MW of new supply has come to market which compares with a total of 51MW in all of 213. The development pipeline indicates that there is potential for a further 135MW of new capacity by the end of 215. Decisions regarding any development of new capacity however will be dependent on the continuation and escalation of customer demand. EUROPEAN COLOCATION SUPPLY & TAKE-UP AS AT Q Q3 21 Q3 211 Q3 212 Q3 213 Q3 214 Q Supply (MW) LHS YTD Take-up (MW) RHS

2 Q3 214 European Data Centres MarketView SUPPLY & AVAILABILITY COLOCATION MARKET HIGHLIGHTS Total availability across the major markets increased to a record high in the third quarter as the opening of two new schemes contributed to a sharp rise in overall supply. In London, the new Virtus facility at Hayes opened for business during Q3 adding 11.4MW of new capacity to the market. Following the purchase by Zenium Technology Partners, the Imtech building in Frankfurt has now been included in our market statistics which adds another 5, sq m of new supply to this quarter s uplift. The result of this has been to increase the level of available space to 149MW, the highest total in our records. The rate at which new space has been released to market has shown an increase this year and for the most part outpaced any increases in demand. A total of 69MW of new capacity has been made available for customer purchase during the year. This represents an increase of 37% when compared to the total of 51MW released in 213. Although the number of customer requirements have increased, the scale of subsequent letting activity has not been sufficient to provide balance. This has resulted in the situation today which is above average market vacancy and in some cases downward pressure on pricing. Of the markets, the significant wholesale presence in London continues to ensure that it retains the highest level of vacancy of the major European markets. Currently 8MW is available for customer purchase in the city which represents 54% of the European total. Customer interest in employing colocation services continues to show increase however, therefore our opinion is that the above average level of vacancy will be short term. With the strongest demand being noted in both Amsterdam and Frankfurt this year, a steady stream of capacity expansion investment by operators has resulted. Customer-ready supply in Amsterdam has risen by a further 9% in 214. This however has not led to an increase in availability which fell to 21.9MW in Q3, the lowest level for two years. Availability in Frankfurt is now the highest seen in the city since 25 at 29.5MW. Similar to London, however, capacity held at wholesale facilities accounts for the majority. Looking ahead, the development schedule over the coming 12 months indicates the completion of some significant schemes across the major markets. Potentially 135MW of new capacity could come to market by the end of 215. Included in this total are flagship programs such as 135m investment by Telehouse in the North Two facility and the redevelopment of the Olympic Broadcast Centre at Stratford which will be operated by Infinity. Further buildout at operational data centres is also included where customer demand will dictate commencement of any development starts. Historic Colocation Supply Colocation Supply and Availability (MW) Colocation Supply Annual Increase (MW) Q3 Contracted Power Available YTD 214 New Supply

3 3 SUPPLY & AVAILABILITY MARKET NEWS ROUNDUP The third quarter of 214 has continued to see reported expansion plans amongst owners and operators of European data centre providers. Notably, the significant announcements amongst carrier-neutral providers involved the largest and more established colocation companies in tier 1 locations. For example, the autumn saw TelecityGroup report the start of construction of a new 16, sq m facility in Amsterdam, whilst Telehouse reported that it would spend 135 million expanding its campus in London s Docklands, adding a further 23,134 sq m of new space. Also in London, Virtus announced the opening of its new facility in Hayes to the west, whilst Eurohub reported that it is set to build out the next 3,8 sq m phase of its Docklands based data centre campus at Greenwich View. However, there continues to be many examples of supply delivered away from the tier 1 locations over the quarter. For example, e-shelter reported that it is investing some 14 million on building its first data centre in Vienna. The company has started construction on the first of three planned phases which will eventually total around 29, sq m. In Sweden, Interxion reported its intentions to build a new 1,1 sq m data centre in Stockholm, its fourth in that city, as well as expanding one of its Austrian facilities in Vienna by 1,6 sq m of equipped space. In addition, Interxion bought the SFR Netcenter data centre in Marseille. The facility is being built in phases but when fully built out, will provide approximately 5,7 sq m of equipped space. Whilst the continued health of the IT managed services and network industries has been driven by enterprises willingness to engage a third party to deliver specialist services, reported increases in supply involving IT integrators and telcos delivered to the market during the past three months has remained relatively muted compared to previous quarters. Some reported expansions included T-Systems opening of its campus in Biere, Germany. With floor space of 5,4 sq m and space for around 3, servers, the area of the twin site can be expanded to almost 4, sq m. Other announced openings included infrastructure provider Pulsant s extension of its South Gyle data centre in Edinburgh, network provider Interoute s expansion of its Paris data centre, and in Holland IT and network provider, BT announced plans to expand its Nieuwegein facility by 3%. Not all enterprises opt to go with a third party, however, and whilst only a handful of examples have been seen this quarter, they are of notable size. For instance, Google confirmed its plans to build a 12 MW data centre in Groningen, Netherlands, whilst BitFury, one of bitcoin s biggest mining infrastructure providers, reported that it had completed construction of a new 2MW data centre in the Republic of Georgia. TAKE-UP & DEMAND MARKET NEWS ROUNDUP As outsourced data centres provide an attractive solution to the needs of enterprises and managed services providers alike, the quarter witnessed buoyant activity across Europe from companies requiring the services of both retail and wholesale colocation providers. Notable examples involving demand from managed services providers saw US web hosting company Liquid Web choose EvoSwitch s Amsterdam data centre for the company's expansion into Europe, whilst Alert Logic contracted with Next Generation Data s facility in Wales and cloud supplier, City Network extended its presence with Interxion in London and Frankfurt. Interxion also secured Austrian hosting provider, Easy Name for its Vienna facility, whilst global integrator IBM announced that its subsidiary SoftLayer, has signed a deal with data centre developer Digital Realty to locate in its Chessington, UK facility. Also in the UK, Infinity reported that it had secured agreements with the UK s national research and education network, Janet, and software and IT services company, Advanced Computer Software for its new Slough data centre. In a similar vein, following Salesforce s previously announced intention to open a data centre in the UK, the software company has announced that it would also open a German facility in 215 for which T-Systems will be the provider and in France, where Interxion is partnering the software giant on its data centre needs. For corporates, use of a third party continues to prove to be an attractive option, either through vanilla colocation or more advanced IT outsourcing. These enterprises benefit from the ability to manage their IT requirements in a cost effective and flexible manner, and the latest quarter saw a number of illustrations of this continuing trend across the continent. For example, in the Netherlands, Colt helped Shurgard consolidate its data centre footprint through its infrastructure in Roosendaal, whilst Atos announced it has been awarded IT outsourcing contracts with EthosEnergy to provide IT managed services in Scotland, and in France by utility company Réseau de Transport d Electricité. Also in France, IT services provider Steria reported that that it secured a four year framework contract with the European Markets and Securities Authority for the provision of managed services. In Spain, Banco Popular signed a major outsourcing contact with IBM which included the modernisation of its Madrid data centre, whilst in Iceland, Australian Bitcoin mining company Digital CC signed a hosting and power supply agreement with data centre builder Verne Global. In the UK, HP Enterprise Services announced that the Business Services Organisation has contracted with it to support Health and Social Care Northern Ireland organisations by providing IT services and transforming the regional health data centre infrastructure, across the region for the next four years. Q3 214 European Data Centres MarketView 3

4 Q3 214 European Data Centres MarketView TAKE-UP & DEMAND COLOCATION MARKET HIGHLIGHTS The third quarter of the year typically marks a slowdown in market activity given the seasonal factors associated with the summer months; however, Q3 214 has bucked this trend. Take-up in the third quarter amounted to 18MW, 67% higher than Q2 and 37% above the ten-year quarterly average for a Q3. The total amount of customer power sold this year is now 56MW, 59% higher than the equivalent period of 213 and the highest amount recorded at this stage of the year since 28. These notable statistics serve to substantiate the observed improvement in customer interest for this year with connectivity-led demand continuing to drive requirements in the major markets. As the year progresses the influence of cloud on demand schedules in particular becomes ever more apparent. Cloud providers have represented over 4% of the total amount of customer power sold at colocation facilities in 214 as capacity is being secured to support current and expected demand from enterprise migration. Although the larger transactions of this year in many cases are attributable to cloud providers, it is possible that the increasing influence of cloud in end user IT strategy is leading to a reduction in typical transaction size. Across the major markets the overall contribution to total take-up of deals over 5kW typically averages 55%. As at the close of Q3 214 this percentage is 49% for the year. This indicates that as enterprises integrate cloud into the outsourcing strategy, subsequently bolstering the demand by cloud providers, this is reducing the number and scale of direct end user contracts awarded to colocation providers. The impact of cloud has also shifted the distribution of demand across the markets. The European connectivity hubs in particular have been primary targets for this type of occupier and this has led to above average take-up in both Amsterdam and Frankfurt. Amsterdam currently has recorded the highest amount of take-up in the major markets. So far this year a total of 17.4MW has been sold a full 54% higher than the total for all of 213. At this level total take-up in Amsterdam is just 15% below the record year of 212. If this record is surpassed this would mean that take-up in Amsterdam will have reached record levels in 4 of the past 5 years. Demand in Frankfurt is also exceeding expectations this year with 16.6MW of customer power sold so far. This total is 52% higher than the 1-year annual average of 1.9MW and 12.7% higher than the total for 213. This shift in demand focus may well result in a change in market order. Europe s largest market, London, has been in receipt of the highest level of take-up in every year since our records began. At present total take-up in London is 9.2% below that of Amsterdam. The results from Q4 will therefore be keenly anticipated. Historic Take-up Analysis Take-up by Market Sector (MW) YTD 214 retail colo wholesale colo Take-up by Location (MW) YTD London Amsterdam 214 Frankfurt Paris Madrid

5 TAKE-UP & DEMAND INVESTMENT AND OUTLOOK Investment During the first half of the 214, we reported a buoyant mergers and acquisition market within the European landscape, and the third quarter has been a continuation of this, as service providers expand their client base and exposure. Amongst the notable transactions in the UK, Interoute Communications acquired the UK based Vtesse Group which included a 2,7 sq m Hoddesdon data centre; the Isle of Man communications company Elite Comms Group acquired local data centre group Wi-Manx, and the Derby based data centre provider, Node4, completed the acquisition of LETN Solutions. Further afield, PlusServer has enhanced its position in the German hosting market with the announcement that it has secured the 1% acquisition of MESH in Dusseldorf and Mainlab in Frankfurt. Dutch engineering services group Imtech sold its ICT division to Vinci at an enterprise value of 255 million, whilst Danish telecommunications group TDC Group bought Swedish managed service provider Viridis IT, and TeliaSonera signed an agreement on the acquisition of Ipeer, a Swedish provider of cloud and hosting services. In terms of future investment, the third quarter of the year also saw some examples of data centre providers raising capital for expansion. For instance, Irish telecommunications company Viatel said it is set to invest some 125 million in a major expansion over the coming year aimed at extending its fibre infrastructure, cloud services and data centres, and will look for acquisition opportunities, supported by its new funding partner, Proventus Capital Partners. In addition, the London based Virtus Data Centres reported that it had secured 5 million in funding from Deutsche Bank with the funds, alongside continued support from Brockton Capital, to be used to drive expansion. Forecast Reports from a number of noted research houses suggest that IT budgets have recovered from the relatively lowly positions that were seen two or three years ago when enterprise spending was characterised by a more constrained dynamic. A perceived recovery in the economies of many of the major global players has encouraged forecasters to be broadly optimistic in their views on spending in general. Of course, concerns over on-going political instability and conflict in Eastern Europe or the Middle East will temper the degree of optimism. Nevertheless, IDC, for example, believe that worldwide IT spending is now forecast to increase by 4.5% this year, helped greatly by the growth in smart phones. That same company recently published its IDC Worldwide Quarterly Integrated Infrastructure and Platforms Tracker, suggesting that the worldwide integrated infrastructure and platforms market increased revenue 33.8% year on year to US$2.4 billion during the second quarter of 214. The increasing preference for third party solutions is unlikely to diminish. Research company, Information Services Group, for instance reports that outsourcing activity in the Europe, Middle East & Africa region hit a record high in the first half of 214 based on the volume of contract awards, and achieved its strongest first-half performance by contract value since 28 with the number of contracts signed up 25% year-on-year. Although the cost and scalability benefits are still driving much of the growth of the cloud services market, the emergence of value-creating solutions has also evolved to drive growth in the market. Indeed, these rivers are set to ensure that the global cloud services market is expected to grow at a CAGR of 17.6% from 214 to 22, reaching a market size of US$555 billion in 22, according to a report from Allied Market Research. This growth will continue to drive demand for appropriate data centre infrastructure to support it, both in the European and global markets. Q3 214 European Data Centres MarketView 5 5

6 Q3 214 European Data Centres MarketView MARKET FOCUS LONDON The noticeable upturn in interest towards outsourced data centre solutions appears finally to be translating into confirmed transactions in Q3. London recorded the highest level of take-up of the major markets during the quarter with take-up rising to 7.2MW, almost three times as much as the Q2 total. The total year to date now highlights a 12% rise in transacted customer power when compared to the equivalent period in 213. Last year however saw significant transaction activity in the final quarter and a repeat would be required for London to record year on year improvement, with take-up currently 45% below the total achieved last year. Noticeable in 214 has been the limited examples of requirement and transaction sizes above the 5kW mark. Typically, accumulation of these large scale transactions contributes around two thirds of total take-up, 61.5% being the ten-year average. So far this year the contribution level has been 34%, well below the longer term trend and highlighting the ongoing customer shift toward smaller day one requirements with growth potential added in. Nonetheless, the improving economic environment and considerable growth potential for corporate outsourcing positions London well for demand improvement to be achieved. Despite a small fall in Q3 the Markit/CIPS services purchasing managers' index (PMI) shows that UK business confidence continues to remain in positive territory. This renewed confidence is leading to rising numbers of major UK based enterprises considering an expansionary IT strategy, which increasingly incorporates cloud. The prospect of a sustainable rise in demand both from enterprises and cloud service providers continues to support investment in to new data centre space. In Q3 Virtus became the latest operator to bring to market a new facility opening the 11.4MW facility at Hayes. A total of 28.5MW of customer power has now been added to capacity in London since the turn of the year, the highest of the major markets. Looking ahead our projections show that a further 61MW could be added between now and the start of 216 although customer demand will dictate when some scheduled build programs will begin. FRANKFURT 6 Against a backdrop of an economic slowdown in Germany demand for data space in Frankfurt has remained strong throughout this year a trend continued through the third quarter. Take-up in Q3 amounted to 3.4MW, marginally less than that of Q2, however 13% ahead of the long term quarterly average of 3.MW. This brings the year to date total to 16.6MW, 9% ahead of the equivalent period in 213 and higher than the total for customer power transacted in all last year. The role of cloud service providers on demand schedules in Frankfurt continues to be significant. Expansion activity from this type of occupier accounts for 64% of all take-up completed so far in 214. Frankfurt has increasingly become a target for major IT infrastructure companies this year in particular partly as a result of growing sensitivity regarding to data sovereignty. Cloud service providers have been forced to acquire new and additional space to accommodate a growing preference from German companies to retain data within country. More fundamentally the position of Frankfurt as a globally recognised European connectivity hub continues to ensure that the city remains strategically important to data centre customers with cross border latency considerations. These two factors combined point towards sustained customer demand moving forward and should encourage a development response from operators. The first signs of an increase in development activity have already begun to have an impact on overall supply which reached 162.5MW in Q3. Since the turn of the year 22MW of new customer ready capacity have been added which represents the highest uplift since 28. Interxion announced in April their intention to accelerate the construction of FRA8 which will add 6MW customer power when completed in 215. Similarly e-shelter continues to make progress with construction of their second building at the Russelsheim campus. Completion of this phase is expected in early 215.

7 MARKET FOCUS PARIS Against a backdrop of a static economy, data centre letting activity remained relatively slow during the third quarter continuing the trend seen for all of 214. Total take-up in Q3 amounted to 1.5MW, similar to Q2 but 41% short of the ten-year quarterly average of 2.5MW. This now brings the year to date total to 5.5MW, a statistic which offers a hint of optimism moving forward as this is on par with the equivalent period of 213. Hope therefore is for a repeat of a strong final quarter as seen last year. The prospect of demand growth however will be dependent on renewal of business confidence which has been weakened by the underperforming national economy. The latest figures from INSEE indicate that 214 will be recorded as a zero growth year for economic output. It is this stagnation that is currently serving to discourage the end user organisations from committing to expansionary investment. Demand schedules in Paris are also beginning to show a shift in typical customers profile. Similar to other major data centre locations instances of demand led by cloud are becoming more frequent. During the quarter it was announced that Salesforce had chosen Interxion s facility to expand its European operations. This was followed by IBM revealing that through the Softlayer brand that they would be opening a new data centre this year responding to the increase in enterprise interest in cloud services. With Paris retaining one of Europe's highest concentrations of global enterprise occupiers it is our opinion that cloud service providers will increasingly factor in future demand. Q3 214 European Data Centres MarketView AMSTERDAM In Amsterdam, 214 could well prove to be the strongest year in our records in terms of customer power sold as Q3 returned another strong set of results. Total take-up for the quarter amounted to 5.8MW, 91% higher than in Q2 and more than double that of Q Year to date, a total of 17.4MW has been sold, 179% higher than the equivalent period of last year and now the highest of any of the major European markets. Continuing to dominate demand schedules is connectivity-driven demand with cloud, telecom and content providers all active. Positioning operations in Amsterdam has become of paramount importance to this type of data centre user, due to the operational necessity of having access to multiple networks to deliver services across Europe. The dense network infrastructure offered in Amsterdam through the colocation centres provides a suitable environment to achieve this and as such colocation demand has flourished. The indication of sustained demand continues to encourage a development response from colocation operators with regard to bringing on new customer ready space. During the third quarter Equinix provided the latest example, announcing that work on the second phase of AMS3 is progressing, a program which will add capacity of 1,8 cabinets. Completion of this program will reinforce the position of Amsterdam as Europe s fastest growing market. On average supply in the city has risen by c.2% pa since Q3 29 the highest of the major markets. The rise in supply levels however has been proportionate to the demand. Availability has not risen excessively, currently standing at 21.9MW of available customer ready power in Q3, the lowest recorded since Q MADRID 7 The Spanish economy continues to return positive results highlighting the first sustained expansion in 6 years. According to Oxford Economics GDP is set to have grown by 1.3% in 214, making Spain one of the strongest performers in the Eurozone. Despite this, the improving business environment has yet to form the desired springboard for enterprise expansionary investment and subsequently the market for outsourced data centre services has remained subdued. The scale of data centre capacity transacted in 214 reflects the enterprise apathy. A total of 198kW was transacted in Q3 bringing the year to date total to 689KW. This level remains 28% less than in the equivalent period of 213 although above the longer term 1-year average of 639kW for the period. An improvement in enterprise confidence in the wider business environment can be expected to pay dividends moving forward with demand growth for outsourced data centre services resulting from unlocked enterprise investment budgets. However a larger scale move to outsourcing will ultimately need a change in IT strategy as well. This may come from the inclusion of cloud which increasingly is being included in future planning and could encourage a wholesale move away from retained in-house data centre infrastructure. Madrid retains a significant concentration of corporate occupiers and businesses are increasingly looking toward the cloud to improve flexibility, reduce costs and remain competitive. 7

8 Q3 214 European Data Centres MarketView KEY STATISTICS EUROPEAN TIER 1 LOCATION SUPPLY MW AVAILABILITY MW COLOCATION TAKE- UP QUARTERLY COLOCATION TAKE- UP YEAR TO DATE London Q Q Frankfurt Q Q Paris Q Q Amsterdam Q Q Madrid Q Q European Tier 1 Total Q Q EUROPEAN MARKET ACTIVITY LOCATION QUARTER London Frankfurt Paris Amsterdam Madrid SoftLayer, an IBM Company, will open a data centre based in Digital Realty s 12, sq m Chessington, Surrey facility. Telehouse is spending 135 million to expand its data centre campus in London s Docklands. A new facility - North Two - will add 23,134 sq m of footprint. Virtus Data Centres open a new 6,4 sq m data centre in Hayes, West London. Infinity announced that it had secured five-year contracts with Advanced Computer Software and with Janet, the UK s national research and education network for data centre services at Infinity s Slough facility. Oracle has announced that it is to open two data centres in Germany, one in Frankfurt, the other in Munich. Equinix has secured Mediaspectrum as a client in its Frankfurt data centre. Zenium Technology Partners has acquired from a new data centre form Imtech. Completed in 212, the facility will be known as Zenium Frankfurt One comprises 5, sq m of net technical space. Further afield, T-Systems opened the campus for a 5,4 sq m data centre in Biere, near Magdeburg. Interoute has expanded its hosting space offering in its Paris data centre to 8 sq m The Paris based European Markets and Securities Authority signed a four year ICT managed services contact with Steria. Salesforce.com announced that it has signed an agreement to establish a new European Data Centre in France, selecting Interxion as its service provider. In the south of France, Interxion has bought the SFR Netcenter data centre in Marseille. When fully built out, the new data centre will provide approximately 5,7 sq m of equipped space US Web hosting provider Eleven2 has announced it opened a new data centre in Amsterdam located in Evoswitch s facility in the city. The construction of a new 16, sq m datacentre for TelecityGroup in Amsterdam is now underway with completion set for 216. EvoSwitch confirmed that Liquid Web, has chosen its Amsterdam AMS1 data centre for the company's first expansion into Europe. Outside, Amsterdam, global search engine, Google has confirmed its plans to build a 12 MW data centre in, in Groningen. In Spain, Banco Popular has signed a strategic outsourcing agreement with IBM to transform its technology infrastructure including recently modernizing its data centre. 8

9 MARKET FOCUS COLOCATION SUPPLY WATCH London Q3 Frankfurt Q3 Q3 214 European Data Centres MarketView Paris Q3 Amsterdam Q3 Madrid Key Q3 Let (MW) Available (MW) 9 9

10 Q3 214 European Data Centres MarketView DEFINITIONS COLOCATION TIER 1 MARKETS Amsterdam, Frankfurt, London, Madrid, Paris SUPPLY Retail colocation supply comprises of fitted data centre space only; unbuilt shell phases of the data centre are excluded. Wholesale colocation supply includes both fitted and shell data centre space. Typically wholesale operators sell shell space which is built out to suit customers. AVAILABILITY Retail availability of space is based on fully fitted space vacant and available to sell Wholesale availability is based on all vacant space. VACANCY RATE The vacancy rate is a product of availability/total supply. COLOCATION TAKE-UP This comprises data centre space committed to at retail and wholesale colocation facilities in the relevant quarter. TOTAL MARKET TAKE-UP This comprises of colocation take-up (retail and wholesale), significant secured data centre space classified as Self-build or Threat stock (either surplus carrier or corporate facilities). Self-build: typically land for development or modern empty warehouse which is acquired for conversion to a data centre for use by an end-user which will use the space for their own purposes e.g. a large bank. Threat stock: surplus carrier/webhosting space offered to the market as competing stock on a carrier neutral basis SPACE TYPE Shell: shell & core space is the base real estate of a data centre, a wind and watertight structure with exposed floor and ceiling slabs and exposed finishes to the walls. The landlord would obtain permissions for data centre use and make provisions for tenants to install their own chillers and back-up power generating equipment, or the landlord would provide these on a build-to-suit basis. In addition, an incoming diverse raw HV (high voltage) power supply would usually be provided. Fitted: fully-fitted space is ready for tenant IT equipment to be installed almost immediately or subject only to minor works being carried out to account for bespoke equipment and layouts. 1

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12 Q3 214 European Data Centres MarketView CONTACTS Andrew Jay Head of Data Centre Solutions CBRE Data Centre Solutions 1 Paternoster Row London EC4M 7HP t: +44 () e: andrew.jay@cbre.com DATA SOURCE Martin Carroll Senior Director CBRE Data Centre Solutions 1 Paternoster Row London EC4M 7HP t: + 44 () e: martin.carroll@cbre.com CBRE in association with Jonathan Heap, Director, ixnewssearch Darren Mansfield Analyst CBRE Data Centre Solutions 1 Paternoster Row London EC4M 7HP t: + 44 () e: darren.mansfield@cbre.com ixnewssearch is the leading daily news research service developed for organisations with a strategic interest in the data centre and mission critical facility industries. Groundbreaking at its inception in 21, the interactive ed document is packed with global news providing invaluable and timely insights into the business of data centres. CBRE DATA CENTRE SOLUTIONS CBRE formed a Data Centre team in 1994 to address the specialised technical real estate needs of high-tech firms such as telecommunications companies, data centre operators and corporates. Core technical real estate services provided by the CBRE Data Centre Solutions team include: Investment Disposal one-off assignments, multi-site marketing campaigns Acquisition one-off assignments, worldwide network rollouts Consultancy consolidation strategies, Mergers & Acquisitions Asset Valuation Bank, Corporate Project Management, Development Monitoring, Due Diligence, Building and M&E surveys Research market reports, statistics, take-up forecasting CBRE has monitored worldwide Colocation supply statistics since This bulletin relates only to the European Colocation Tier 1 markets. Additional market statistics are available on request. + FOLLOW US GOOGLE+ LINKED IN TWITTER 12 Disclaimer CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.