CHANGING DATA CENTRE SITE SELECTION CRITERIA

Transcription

1 CHANGING DATA CENTRE SITE SELECTION CRITERIA Andrew Jay Executive Director, CBRE Data Centres 20th November 2013 PREPARED FOR

2 AGENDA Traditional Site Selection Criteria Impact of Changing IT? What Does the Market Show? 2 CBRE DATACENTER DYNAMICS LONDON

3 TRADITIONAL SITE SELECTION CRITERIA 3 CBRE DATACENTER DYNAMICS LONDON

4 TRADITIONAL SITE SELECTION CRITERIA Data centre prerequisites: Power, fibre, security, planning and permitting, no hazards Operational prerequisites: IT personnel proximity, Engineering support, travel times Location differentiators: Low taxation Green power Cheap power Timing/speed to market Cheap land 4 CBRE DATACENTER DYNAMICS LONDON

5 TRADITIONAL SITE SELECTION CRITERIA 5 CBRE DATACENTER DYNAMICS LONDON

6 TYPES OF DEMAND Major City Demand Low Latency Operational Ease Location Specific Demand Outside of Major Cities Established Corporate Location Local Synchronous Replication Local Demand Minor Cities Smaller scale Flexible Demand Prepared to locate anywhere 6 CBRE DATACENTER DYNAMICS LONDON

7 IMPACT OF CHANGING IT? 7 CBRE DATACENTER DYNAMICS LONDON

8 Power Power TRADITIONAL REQUIREMENTS Time Time Total Control Design & Operation Availability of Capital Full service in house IT team Long-term Strategic Asset Relaxed on Specification Capital Restrained - OPEX Compute of demand / Hybrid Shorter/Flexible Contracts 8 CBRE DATACENTER DYNAMICS LONDON

9 TRADITIONAL REQUIREMENTS 9 CBRE DATACENTER DYNAMICS LONDON

10 CLOUD REQUIREMENTS Private Cloud Hosting & Managed Services Public Cloud Global IT Infrastructure Latency/Connectivity Proximity to Customers Low Risk Location Power Cost Green Energy Tax Incentives 10 CBRE DATACENTER DYNAMICS LONDON

11 PRIVATE CLOUD SELECTION CRITERIA 11 CBRE DATACENTER DYNAMICS LONDON

12 PRIVATE CLOUD Rackspace Hosting signed Digital Realty to build its second data centre in the UK in or around London, on a 12-acre, 10MW site that will be built especially for the cloud and hosting company. We are seeing more and more of our revenue growth coming from cloud, this will be its primary purpose, but as a company we offer hybrid services, where customers can combine cloud and hosting as best fits their needs. Fabio Torlini, Rackspace s VP of International Marketing Savvis, a CenturyLink (CTL) company announced the opening of a new data centre for the London metro market.the new data centre located in London Docklands was leased fully fitted by Savvis. The success of our existing data centre in Slough confirms that businesses view this area as a strategic geographic location. Jeff Von Deylen, president of Savvis Opened in 2011 Terremark s flagship data centre, The NAP of Amsterdam,is directly connected to AMS-IX and through this presence, Terremark s enterprise and government customers can leverage the hundreds of global networks while reducing latency and controlling transit costs.. Amsterdam is an established central business hub for more than 500 international companies, and we are uniquely positioned to tap this market. Herman Oggel, president of Terremark s European business unit. 12 CBRE DATACENTER DYNAMICS LONDON

13 PUBLIC CLOUD Key Considerations Location Corporate Tax % per kwh Electricity % renewable sources Network Readiness Ease of doing business Austria 25.0% % 19 of of 185 Belgium 34.0% % 24 of of 185 Czech Republic 19.0% % 42 of of 185 Denmark 25.0% % 8 of of 185 Finland 24.5% % 1 of of 185 France 33.3% % 26 of of 185 Germany 29.5% % 13 of of 185 Greece 26.0% % 64 of of 185 Iceland 20.0% % 17 of of 185 Ireland 12.5% % 27 of of 185 Italy 31.4% % 27 of of 185 Luxembourg 29.2% % 50 of of 185 Netherlands 25.0% % 4 of of 185 Portugal 25.0% % 33 of of 185 Spain 30.0% % 38 of of 185 Sweden 22.0% % 3 of of 185 Switzerland 18.0% % 6 of of 185 United Kingdom 23.0% % 7 of of CBRE DATACENTER DYNAMICS LONDON

14 PUBLIC CLOUD SELECTION CRITERIA 14 CBRE DATACENTER DYNAMICS LONDON

15 PUBLIC CLOUD Dublin, Ireland Sep 2013, Microsoft has been given the go ahead for a new 380 million 35,000sqm data centre in Dublin. The new project will be the fourth in Dublin and bring total spending in the city to 900 million. 15 CBRE DATACENTER DYNAMICS LONDON

16 PUBLIC CLOUD Dublin, Ireland Amazon established its EC2 offering in December 2008, via a data centre in Dublin. In 2011, Amazon purchased the 22,500sqm former Tesco storage facility at Greenhills Industrial Estate in Dublin 24 for expand its data centre presence. 16 CBRE DATACENTER DYNAMICS LONDON

17 PUBLIC CLOUD SELECTION CRITERIA 17 CBRE DATACENTER DYNAMICS LONDON

18 PUBLIC CLOUD Hamina, Finland Nov 2013, Google will invest a further 450 million in addition to the 350 million already spent on the Hamina facility in Finland. The site uses a high tech cooling system, utilising seawater from the Bay of Finland, which reduces energy usage. 18 CBRE DATACENTER DYNAMICS LONDON

19 PUBLIC CLOUD Lulea, Sweden In northern Sweden 60 miles from Arctic Circle natural cooling will 'chill' computers for eight months per year. The site requires120 MW of energy which is fully derived from hydropower. 19 CBRE DATACENTER DYNAMICS LONDON

20 WHAT DOES THE MARKET SHOW? 20 CBRE DATACENTER DYNAMICS LONDON

21 Take up sqm MARKET DEMAND Changing Requirements 120, ,000 80,000 60,000 40,000 20, f Retail colo Wholesale colo Self build Restrictive budgets, more realistic assessment of potential usage and need for greater flexibility has led to fall in self build data centres. 21 CBRE DATACENTER DYNAMICS LONDON

22 LONDON NEW SUPPLY 2012 & CBRE DATACENTER DYNAMICS LONDON

23 Take Up sqm YoY Supply Increase sqm LONDON 35, % 60,000 30, % 50,000 25,000 20,000 15,000 10, % 20.00% 15.00% 10.00% 40,000 30,000 20,000 5, % 10, Take Up Vacancy TAKE UP PRICING SUPPLY AVAILABILITY 23 CBRE DATACENTER DYNAMICS LONDON

24 LONDON MARKET IN EQUILIBRIUM? 70,000 60,000 50,000 40,000 30,000 20,000 10, f 2014f 2015f Available Supply (Sq M) 24 CBRE DATACENTER DYNAMICS LONDON

25 CONCLUSIONS Traditional requirements getting smaller, needing additional services and more flexible terms. Private & Public Cloud companies driving the market with very different decision making criteria. Colocation pricing pressures creating unique opportunities in some markets which won t last forever. Data centre procurement is undergoing it s biggest change since the dot com crash! 25 CBRE DATACENTER DYNAMICS LONDON

26 THANK YOU 26 CBRE DATACENTER DYNAMICS LONDON