22 23 24 25 26 27 28 29 21 211 212 213 European Data Centres MarketView 213 CBRE Global Corporate Services SUPPLY +7% y-o-y Jun 13 AVAILABILITY +15% y-o-y Jun 13 VACANCY RATE +1.1% y-o-y Jun 13 COLOCATION TAKE-UP -31% y-o-y Jun 13 OUTLOOK FOR EUROPEAN DATA CENTRES REMAINS POSITIVE DESPITE SLOW TAKE-UP IN 1 Quick stats AS AT QUARTER 2 213 Supply Availability Headlines Healthy supply pipeline for 214 Quarter 2 total take-up 8.8MW Cloud remains significant factor in new demand Frankfurt take-up18% higher than at mid-year 212 London retail take-up passes last year's total In this issue Executive Summary Supply & Availability Take-up & Demand Market Focus London Market Focus Frankfurt Market Focus Paris Market Focus Amsterdam Market Focus Madrid Key Statistics Definitions 667,818 sq m 12,232 sq m Vacancy rate 15.31% Colocation take-up quarterly Colocation take-up annual YTD 6,3 sq m 15,95 sq m EXECUTIVE SUMMARY An improvement to the economic outlook across the eurozone is serving to restore some business confidence in the second quarter. Data centre operators are beginning to see the result of a more optimistic corporate view with a rise in new enquiries. The opinion that an outsourced IT solution is able to deliver improved cost efficiency is proving attractive to cost-conscious companies. Consequently, renewed interest from corporate occupiers combined with enquiries from technology service providers is providing a promising outlook for data centre operators. Colocation take-up in the first half of the year has yet to reflect the positive signals that are emerging. Across the markets, total take-up for Quarter 2 was 6,3 sq m (8.8MW) bringing the year-to-date total to 15,95 sq m (21.7MW), a third less than at the equivalent point in 212. London accounted for 5% of newly contracted space in Quarter 2 with take-up at retail facilities now passing the total for last year. Activity slowed in Frankfurt during the second quarter although colocation take-up in the city is now 18% ahead of mid-year 212. Amsterdam continues to receive strong market interest, however, a smaller number of large transactions this year has meant that total take-up has remained lower than expected. Take-up has shown improvement in Paris in Quarter 2 but demand has remained inconsistent in the French capital. The forecast slowdown in supply growth for this year is proving to be accurate with operators consolidating their position following last year's record increases. Vacancy rates remain at a stable 15.3% with a gradual decline expected in the short term. The supply pipeline beyond this year indicates that 35, sq m could come to market in 214. This now includes new schemes announced recently by Digital Realty and Interxion that serve to exemplify operator confidence in the long-term growth of the sector. EUROPEAN TIER 1 COLOCATION MARKET AS AT 213 7, 6, 5, 4, 3, 2, 1, 8, 7, 6, 5, 4, 3, 2, 1, Supply (Sq M) LHS Take-up (Sq M) RHS
213 European Data Centres MarketView SUPPLY & AVAILABILITY COLOCATION MARKET HIGHLIGHTS Supply growth for 214 With new build programs slowing this year, data centre capacity across the main markets has remained stable at mid-year 213. Many of the major operators completed new build and expansion projects last year, aggregating into record new supply. This program of construction has now provided sufficient levels of equipped data centre space to be able to service the current and immediate future level of demand. One significant new opening of the second quarter has been that of new entrant, Volta in central London. The initial phase of 1.2MW is open and provides competition to the established London city operators. The product of these new additions and last year's expansion programs has been a rise in availability. Current availability in London stands at 18.6% against a European average of 15.3%. At this level, London at present has the highest level of vacancy of the major markets although given the consistent demand that the capital receives, the market remains well balanced. Outside London, operators have not sat idle with build and expansion plans into 214/215 already announced. The fastest growing market of recent months has been Amsterdam and the city has again been the focus of much attention most recently. Digital Realty announced the acquisition of a 5.4 acre site at Hoofddorp with plans to construct a 15,9 sq m (11.5MW) data centre. Technology-led demand continues to drive new interest in this market, with this new investment outlining operator expectations on demand sustainability moving forward. Interxion have also made public their intention to construct a new 6MW facility in Frankfurt. Data centre supply in the city has grown slowly in recent years principally because of market oversupply in the preceding 1 years. Market vacancy in the city is now one of the lowest of the major locations at 13.6% with strong demand this year likely to encourage further falls. Moreover, this trend of falling availability accurately forecasts the European picture in the short term. Selective investment will continue by operators but a repeat of the supply growth of last year is not envisaged. The main focus for 213 will be to consolidate existing positions and plan for longer term expansions into Tier 1 and peripheral markets. SUPPLY PIPELINE GROWS FOR 214 Charts 2 & 3: Historic Colocation Supply Colocation Supply and Availability (Sq M) 7, 6, 5, 4, 3, 2, Colocation Supply and Availability (MW) 7 6 5 4 3 2 2 1, 28 29 21 211 212 213 Supply Availability 1-28 29 21 211 212 213 Supply Availability
SUPPLY & AVAILABILITY MARKET NEWS ROUNDUP During the second quarter of the year, the technical real estate market across Europe continued to see additions to the supply of colocation space from retail providers. In mainland Europe, for example, Interxion announced the building of its eighth data centre in Frankfurt which will deliver four 9 sq m phases, whilst Equinix reported the opening of the first 1,6 sq m phase of its fifth data centre in Zürich. In southern France, Sigma Group opened its new 2, sq m facility in Nantes, whilst Euclyde Data Centers announced plans for its second data centre in Sophia Antipolis, which will provide up to 2,5 sq m of technical space. Further afield, NTT Communications Russia has taken space in IXcellerate's Moscow One data centre, to offer colocation services to the area. A number of telecommunications companies have also reported activity over the last quarter. For example, in Spain, Telefónica has launched the first phase of its Alcalá Data Centre project, near Madrid, in which it has so far invested more than 12 million, with plans to increase this to 3 million over the coming years. Meanwhile, in Russia, Miran announced plans to open its second data centre in St Petersburg with the first phase set to launch in August, whilst in Latvia, Lattelecom has opened its Dattum Data Centre in Riga, to offer cloud computing and big data services. 213 European Data Centres MarketView In the UK, there were fewer reports of larger amounts of technical real estate space coming to the market, the most significant in the period being Portal Data Centres who announced the start of construction of a 2,8 sq m facility in Aston, near Birmingham. However, there continued to be activity on a smaller scale amongst data centre solutions companies, such as LDEX, who completed a 325 sq m expansion of its facility in North West London, Everest Data Centres, who completed a data hall at their new Reading facility and Node4, who finished a 2 rack expansion at its Northampton data centre. From a wholesale development perspective, speculative build activity continues to be limited, although there are pockets of development underpinned by pre-letting activity. In Poland, SPV Grodzisk is building a data centre in the town of Grodzisk-Mazowiecki, just outside Warsaw, to deliver 1,5 sq m of space which has been leased by the mobile operator Polkomtel and pay-tv operator Cyfrowy Polsat. In the UK, SEGRO has announced that Paragon Internet Group on behalf of its subsidiary Tsohost.com has taken 1,3 sq m on the Slough Trading Estate on a 15-year lease, whilst Ark Data Centres announced the completion of the construction of its modular facility known as P1 at its Spring Park data centre campus in Wiltshire. 3 Activity amongst IT integrators, carriers and hosting companies continues to provide a dominant driver in the supply of data centre space across Europe. Bolstered by the continued growth in demand for third party infrastructure services from corporates, this group of data centre owners, occupiers and operators have a prominent role in the expansion of the European data centre footprint. For example, in Belgium, Interoute launched the 1,5 sq m expansion of its Flanders facility, whilst global IT services company, IBM, reported the opening of a new facility in Ehningen, Germany, and digital solutions provider, Bull, launched the first phase of its new data centre at its Paris campus. 3
213 European Data Centres MarketView TAKE-UP & DEMAND COLOCATION MARKET HIGHLIGHTS Second half bounce for take-up? At the close of the second quarter, transaction levels have remained below average across the major European markets despite strong interest. Total take-up for Quarter 2 was 6,3 sq m (8.8MW), a relatively low total given the current market, although the second quarter of the year often marks a slowdown in activity. Again, the majority of sources for new requirements continue to come from the telecoms and technology sector where business growth and latency demands are dictating extra capacity requirements. Cloud-based interest also continues to factor highly in all locations. This is driven not only by dedicated service provider expansion, but also from increases in corporate deployment of private cloud. The push toward maximising productivity through efficient use of IT is now outweighing fears over security. This is manifesting through companies deploying a mix of collocation and cloud services for their IT platforms. Corporate confidence overall is showing improvement this year and this is translating into new IT projects. It is too early to proclaim that there has been a discernible change in corporate end user mood. However, recent growth in interest would suggest that a shift in sentiment is occurring resulting in greater willingness to accept new investment projects. Operators in the major corporate centres such as London, Frankfurt and Paris will hope that momentum is maintained and converted into transactions in the second half of this year. At the mid-year point London, Europe's largest data centre market, has recorded the highest take-up with 2,85 sq m (4.4MW) transacted in the second quarter. The London retail sector in particular continues to show improvement with take-up for the year now surpassing the total for last year. Total take-up in Frankfurt is just short of the London total for the first half of the year accounting for 32% of the Tier 1 total compared to London's 34%. In Amsterdam, take-up totals are yet to reflect the strong market interest. Connectivity-led demand remains a dominant source of new business across all markets currently and this is where Amsterdam retains its strong position. The second half of the year should see take-up totals improve and several sizeable transactions finally complete. For Paris challenges remain with consistency of new demand although take-up improved in the second quarter. Both Paris and the other major markets will gain encouragement from growth in business confidence. The rise in new enquiries has brought renewed optimism to the European markets. with budgetary control of potential data centre customers delicately balanced, it will be interesting if the second part of 213 results in the expected rise of completed transactions. Charts 4 & 5: Historic Take-up Analysis 4 Total Take-up by Market Sector (Sq M) Colocation Take-up by Location (Sq M) 12, 1, 8, 6, 4, 2, 28 29 21 211 212 213 retail colo wholesale colo self build threat stock 8, 7, 6, 5, 4, 3, 2, 1, 28 29 21 211 212 213 London Amsterdam Frankfurt Paris Madrid
TAKE-UP & DEMAND MARKET NEWS ROUNDUP Whilst evidence suggests that there is improvement with regard to the prospects for economic growth across Europe as whole and accepting that these prospects vary wildly from country to country the technical real estate market is continuing to benefit from relatively healthy levels of activity as companies plan for growth and execute IT strategies that require data centre space. As has been noted in our reports for a number of years now, IT integration and outsourcing continues to play a leading role in the take-up of data centre infrastructure, as corporates are increasingly at ease seeking a third party solution for their IT requirements. The past three months has seen a number of notable examples of these types of transactions. One significant example saw Salesforce.com sign an agreement with NTT Europe to establish a European data centre in the UK. The facility is scheduled for completion in 214, and will support the company's cloud computing services across its growing customer base in Europe, Middle East and Africa. In a similar vein, Oracle reported the opening of a new data centre in the Thames Valley specifically to support the company's work for the UK government, whilst SunGard Availability Services announced that it has signed a 5-year contract with Serco Group for their UK IT infrastructure needs. Investment There have been a number of notable direct real estate investment transactions announced during the second quarter of the year, evidence that data centres are continuing to attract their share of interest from the investment world. Securus Data Property Fund, the world's first Shariah-compliant data centre fund, continued to be active and bought its sixth data centre, the Almere Data Centre located in Amsterdam during the second quarter. Also in Amsterdam, private equity and UK investment banking group, Evans Randall, paid a reported 18.25 million to the developer of the Telecitygroup data centre near Schiphol airport, a 13,75 sq m facility let on a 2- year lease. The second quarter also provided evidence that the sector is seeing continued strategic merger and acquisition activity, as companies seek to bolster service offerings and enhance data centre solutions. For instance, it was announced that Dublin-headquartered Digiweb merged with Viatel, a London-based telecoms operator to create a data solutions company that now connects 34 western European cities over 85km of fibre network to provide data centre and network services. 213 European Data Centres MarketView In Germany, Bull reported that they are providing Tele Columbus with IT outsourcing services and Tieto has taken overall responsibility for the IT operations at DEKRA Industrials and DEKRA Automotives in Sweden. In Spain, HP Enterprise Services reported that they have won a 1-year contract with Generalitat de Catalunya for transformation of the government's computing environment. Retail colocation providers throughout Europe have continued to report relatively buoyant activity amongst enterprises taking managed technical space. Some examples include Telecitygroup, who reported the addition of carrier IX Reach to one of its London facilities; Virtus announced that Queen Mary, University College London is hosting its core infrastructure at their LON1 facility, and Equinix reported that it is providing data centre services to online gaming company, War Gaming. In France, IT integrator Neos Telecoms has reportedly bought a 35% stake in French regional operator, HITS Datacentre for an undisclosed sum; in Holland, IS Group completed the acquisition of NXS Internet whilst Veronis Suhler Stevenson and GMT Communications Partners provided growth capital to IT-Ernity in connection with the acquisition of a majority shareholding, and in Turkey, Telecitygroup acquired data centre company, SadeceHosting for a reported 25 million. In terms of capital-raising activity, the second quarter saw the UK private equity provider, LDC complete its investment to support the management buy-out and continued growth of data centre company, Node4. The deal reportedly provides further capital to help the growth and expansion of Node4, primarily through continued development of new data centres and potential future acquisitions. 5 In the Netherlands, The Ministry of Infrastructure and the Environment and the Custodial Institutions Agency along with other Dutch government agencies have agreed to site IT infrastructure in two Equinix data centres in Amsterdam, AM2 and AM3 Science Park and in Dublin, Amazon Web Services has opened a new network facility in Eircom's Clonshaugh data centre to help improve the performance of its AWS Direct Connect cloud offering. One other announcement of note saw Google report that they will invest 3 million to expand its European data centre in Belgium in order to meet growing demand for its online services. The facility, which became fully operational in September 21, is located in St Ghislain. 5
213 European Data Centres MarketView MARKET FOCUS LONDON The good news in London for the second quarter is that underlying economic conditions have continued to show improvement. An optimistic view is that a corner has been turned and business confidence will remain on a stable path, consequently encouraging new investment. For London's data centre operators this is welcome news albeit of little surprise. New interest in taking services in London's data centres has been brisk from the turn of the year with evidence that corporates are preparing for better times ahead. End user caution remains high however, leading to long periods of contractual negotiation and internal deliberation before commitment is entered into. The overall take-up figures for the first half of the year affirm current market conditions with totals below longerterm averages. Take-up for the first half of the year is 5,14 sq m (9.MW). Our expectations however are that the uptick in new requirements in early 213 will bring a boost to take-up statistics in the second half of the year as transactions complete. On the supply side, London's data centre providers have continued to bring new space to market providing a clear indication of operator expectations of future increases in demand. London's newest operator Volta has now opened the first phase of their Great Sutton Street facility with the initial phase bringing 1.2MW immediately offered to market. This new site further adds to the sharp increases in supply of last year where several of the major operators proceeded with expansion plans or announced future intentions. Supply rose by 27, sq m (44MW) last year the highest amount since before the financial crisis of 27. For the London market in the short term, this has created some pricing pressure where operators are eager to secure customers into newly built space. Longer term however, growth in supply further reinforces the city's positions as Europe's leading and most diverse location for data centre services. FRANKFURT 6 Transactional activity in Frankfurt has been much quieter than at the beginning of the year although market interest for data services remains relatively strong. Total take-up for the quarter was 1,6 sq m (1.MW), bringing the total for the year to 4,86 sq m (4.7MW). At the mid-year point Frankfurt is now comfortably 18% ahead of the equivalent period in 212. Cloud continues to drive the majority of new interest and committed spending, with service providers increasing capacity and end users incorporating cloud into their strategy. Budgetary pressure remains high on the agenda although increasingly business growth is reliant on services delivered with IT. Past lessons have, for the most part, been learnt where previously companies often over-specified the mechanical and electrical redundancy in their facilities and under-utilised the space and power. IT strategies for end users are now deploying a mix of colocation for mission-critical applications where control and redundancy in systems remain paramount. This sits alongside cloud deployment for non-mission-critical business applications allowing for scalability and flexibility. Importantly, companies from the financial services sector are also returning to the market. This is good news for the local data centre providers, where the city's considerable concentration of this type of customer offers much potential for new business. An increasing trend for this sector is to outsource their data centre needs, shifting capex to opex, retaining funds for core business. On the supply side, Interxion has been the latest of the operators to announce growth plans in the city. The construction of their FRA8 6MW facility is to be built in 4 phases with an initial delivery time of 214. This announcement adds to the positive supply news of last year, which saw the opening of e-shelter s new Russelsheim facility and the acquisition of Databurg by Telehouse and Ancotel by Equinix. This will maintain market balance moving forward with the Frankfurt market relatively low at 13.6%.
MARKET FOCUS PARIS The data centre market in Paris has remained relatively static in the second quarter, undermined by continuing weakness in the French economy (GDP growth for 213 remains negative). Underlying business confidence in the French capital remains weak and this, in the main, continues to discourage locally situated firms to commit to significant investment. As such, new data centre demand is presently irregular with new and ongoing requirements remaining long-drawnout.. One area of new demand that is Larger corporate requirements remain evident comes from growth in digital largely absent from the market at media and content. The online market present although outsourced solutions globally is expanding rapidly and this are gaining favour. Data centre continues to necessitate new data services are becoming a utility where centre capacity to support latency, corporate spending is taking place with infrastructure and storage major firms keen to offload IT expense requirements, particularly in areas of from the balance sheet. This is high population. This is currently encouraging interest in cloud services driving not only specific provider although to date this has not been on requirements but also new telecoms the same scale as in the other major business where local colocation markets. operators are seeing business develop. 213 European Data Centres MarketView AMSTERDAM The data centre landscape in Amsterdam continues to evolve rapidly with an acquisition by Digital Realty the latest investment in the city. The announcement of their new 15,9 sq m (11.5MW) facility in Hoofddorp, where initial phases are due to be ready by mid next year, adds to the growing list of major expansions by leading operators. Data centre supply has almost doubled in the past five years reaching 95, sq m (111MW) at responding to strong growth in end user interest. MADRID Despite the domestic economy remaining troubled by periods of recession (GDP forecast for the Netherlands remains a conservative -.9% for 213), Amsterdam data centre demand has continued to display resistance to downward pressure. The main reason for this is that the majority of new interest has emerged from multi-national companies with the city seen as the primary location for connectivity-driven demand in Europe. High quality connectivity is particularly important to telecom and technology-focussed occupiers. It is this type of customer that is most active across Europe currently. At the mid-year point total take-up does not reflect the strong interest in the market. A total of 2,25 sq m (3.2MW) of data centre capacity has been transacted so far this year, falling short of the longer term average. The market at present is suffering from a similar fate to London where the transactional process is taking longer to complete. The result of this will mean that second half of the year should see improvement to transaction levels where several significant contracts are finalised. 7 Quarter 2 has brought positive news with regard to the troubled Spanish economy where contraction is at least showing signs of slowing. The emergence of the wider eurozone from recession has additionally provided a boost to business confidence bringing hope that outward business spending will shortly follow. The main challenge for business is that without clear sign of sustained improvement in core trading conditions deployment of funds toward IT investment cannot be justified. For some, funds just simply are not available with Spanish banks remaining reluctant to lend or service debt. Small and medium sized enterprises in particular are currently finding it hard to raise funds to grow business or invest in new IT infrastructure. This limiting factor is reducing the number of new data centre requirement coming to market although a desire to employ an outsourced IT service continues to show growth. Third party use for IT services typically includes the procurement of integrator services, usually in tandem with a data centre operator, although current examples of this are small scale. The opening of the first phase of Telefonica's new data centre at Alcalá de Henares highlights local corporate preference toward a managed service. Pressure of budgetary spending may encourage further corporate interest in outsourced services moving forward, although overall corporate reluctance toward any sort of spending is likely to continue for the immediate future. 7
213 European Data Centres MarketView MARKET FOCUS COLOCATION SUPPLY WATCH London 3, 25, 2, 15, 1, 5, 28 29 21 211 212 213 2% 18% 16% 14% 12% 1% 8% 6% 4% 2% % Frankfurt 18, 16, 14, 12, 1, 8, 6, 4, 2, 28 29 21 211 212 213 25% 2% 15% 1% 5% % Paris Amsterdam 12, 1, 8, 6, 4, 2, 28 29 21 211 212 213 14% 12% 1% 8% 6% 4% 2% % 12, 1, 8, 6, 4, 2, 28 29 21 211 212 213 25% 2% 15% 1% 5% % Madrid Key 3, 25, 2, 15, 1, 5, 28 29 21 211 212 213 4.% 3.5% 3.% 2.5% 2.% 1.5% 1.%.5%.% Supply Vacancy 8
KEY STATISTICS EUROPEAN TIER 1 LOCATION SUPPLY SQ M AVAILABILITY SQ M VACANCY RATE % COLOCATION TAKE-UP QUARTERLY COLOCATION TAKE-UP YEAR TO DATE London 213 282,79 52,379 18.57% 2,85 5,14 212 267,163 45,7 17.11% 1,475 14,845 Frankfurt 213 155,572 21,12 13.58% 1,6 4,86 212 15,658 23,68 15.72% 1,665 9,455 Paris 213 16,174 12,582 11.85% 1,555 2,49 212 97,751 1,2 1.25% 2,455 8,435 Amsterdam 213 95,429 15,294 16.3% 855 2,25 212 79,867 9,93 11.39% 1,69 11,66 Madrid 213 28,564 857 3.% 25 58 212 27,611 161.58% 6 585 European Tier 1 Total 213 667,818 12,232 15.31% 6,3 15,95 212 623,5 88,654 14.23% 7,345 44,98 213 European Data Centres MarketView EUROPEAN MARKET ACTIVITY LOCATION QUARTER 2 213 London Frankfurt Paris Amsterdam Madrid Savvis announced an expansion of one of its London data centres for completion by September this year. SEGRO has announced that Paragon Internet Group on behalf of its subsidiary Tsohost.com has taken 1,3 sq m on the Slough Trading Estate on a 15- year lease for its first dedicated data centre. LDeX announced the latest expansion phase of colocation space at its LDeX1 data centre in northwest London. Interxion announced that is to build its eighth data centre in Frankfurt in four phases of 9 sq m each. Equinix has announced it has expanded its relationship with Internet Exchanges, DE-CIX, with the installation of new Points of Presence in three Equinix data centres in Frankfurt. LeaseWeb is expanding its data centre space at Telehouse Frankfurt. OpenDNS has announced it has opened a new data centre in Paris, alongside five others across Europe, located in Prague, Copenhagen, Berlin, Warsaw, and Bucharest. Neos Telecoms, the French IT integrator has bought a 35% stake in a French regional operator, His Datacentre. The move is partially designed to help Neos expand its portfolio outside Paris. Securus Data Property Fund, has bought its sixth data centre, the Almere Data Centre in Amsterdam. Evans Randall paid a reported 18.25m for the Telecity data centre in Amsterdam. The facility totals some 13,75 sq m and is let on a 2-year lease. Equinix signed an agreement to provide IT infrastructure services to The Ministry of Infrastructure and the Environment, the Custodial Institutions Agency and other Dutch government agencies in two data centres, AM2 and AM3 Science Park, Amsterdam. Telefónica has launched the first phase of its Alcalá Data Centre project, located in the town of Alcalá de Henares, near Madrid. Hurricane Electric announced that it is continuing its global network expansion with a new Point-of-Presence at the Interxion Madrid facility. 9 9
213 European Data Centres MarketView DEFINITIONS COLOCATION TIER 1 MARKETS Amsterdam, Frankfurt, London, Madrid, Paris STOCK Colocation stock: carrier neutral data centres where the operator allows any carrier to connect into the facility and to connect to third parties within the facility, not discriminating between different carriers and charging only nominal fees for interconnection. This is split into two distinct offerings: Retail colocation: targets smaller requirements typically sold as racks, cages or suites in terms of floor space/it power and offers an element of at least smart hands and eyes. Colocation stock includes both fitted and shell expressed as a net technical floor space/it power equivalent figure. Wholesale colocation: targets larger requirements in terms of floor space/it power typically 5kw (35 sq m) to 1MW (7 sq m) and offering real estate FM services only. Held in shell prior to contract, includes both fitted and shell expressed as a net technical floor space/it power equivalent figure. SUPPLY Retail colocation supply excludes un-built phases of the data centre i.e. only fitted raised floor space is included. 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 of space and vacancy rates are based on both fitted and shell space. AVAILABILITY Retail availability of space is based on vacant fully fitted space only. 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. 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
CONTACTS Andrew Jay Head of Data Centres Global Corporate Services CBRE 1 Paternoster Row London EC4 m 7HP t: +44 ()2 7182 3461 e: andrew.jay@cbre.com DATA SOURCE Martin Carroll Director Global Corporate Services CBRE 1 Paternoster Row London EC4 m 7HP t: + 44 ()2 7182 3529 e: martin.carroll@cbre.com CBRE in association with Jonathan Heap, Director, ixnewssearch Darren Mansfield Analyst Global Corporate Services CBRE 1 Paternoster Row London EC4 m 7HP t: + 44 ()2 7182 319 e: darren.mansfield@cbre.com 213 European Data Centres MarketView 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 e-mailed document is packed with global news providing invaluable and timely insights into the business of data centres. CBRE DATA CENTRES 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 Data Centre 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 1999. This bulletin relates only to the European Colocation Tier 1 markets. Additional market statistics are available on request. + FOLLOW US GOOGLE+ LINKED IN TWITTER 11 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. 11 www.cbre.com