Colo market enjoys 20 percent increase

CBRE, the global real estate advisor, projects that the four major European markets of London, Frankfurt, Amsterdam and Paris will see another 120MW of further colocation supply in the next 6 months. This represents 12% of the current supply across these markets.

With 74MW of new supply across the major markets in the first-half of 2017, CBRE anticipates that the colocation market is on course for a single year in which nearly 20% of all current supply comes online.
 
This unprecedented level of new supply in driven by enormous confidence in European take-up, exemplified by a combined 31MW of transactions across the four key markets during Q2. This brings total take-up in H1 2017 to 58MW, a new record for the first-half of any year.
 
London again proved to be the most sought after market, with 33MW take-up for the quarter, which brings London’s share of YTD take-up across the four markets to 57%. Amsterdam sprung to life with 10MW of power sold in Q2. Frankfurt and Paris again suffered from the cyclical nature of current demand, but CBRE  expects that both markets will pick up  in the next year.
 
Mitul Patel, Head of EMEA Data Centre Research, EMEA at CBRE commented:
 
“Confidence in the European colocation sector is higher than ever and Q2 delivered another blockbuster performance. The cloud companies that are driving recent growth in Europe show no signs of decelerating in their procurement of colocation space and developers are responding in-kind with an unprecedented level of build activity.
 
“The continued increase in our use of IT and reliance on the digital world, and thus the increased need for processing power, has led to record-breaking levels of new supply and take-up since 2016. In context, in the six quarters prior to 2016 we saw 90MW of new supply and 91MW of take-up. In the 6 quarters since, we have seen 204MW of new supply and 212MW of new take-up.”
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