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February 22, 2017

European data centres see record-breaking colo take-up in 2016

CBRE finds that the European data centre market for 2016 reached high record levels from colo activity.

By Hannah Williams

Global real estate advisor, CBRE revealed that the European data centre market across its four major hubs reached a record take-up of 155MW in 2016.

The hubs located in Frankfurt, London, Amsterdam and Paris all boosted their individual colocation activity which led to the record level.

Amsterdam, which saw a take-up of 54MW, became the first market in history to receive over 50MW of take-up in a single year, while London and Frankfurt scoring 49MW and 34MW recorded more take-up than any individual market before 2016.

The fourth major hub, located in Paris saw a take-up of 17.6MW in the year, which is alsmost more than seven times better than its performance of 2.5MW in 2015.

Paris also saw a huge surge in take-up from 2014 and 2015 during Q2 2016, according to findings from CBRE.

Read more: European data centre market sees record colo take-up in Q2

CBRE refers to the take-up of 2016 as the largest increase from any market in the previous year.

Andrew Jay, Executive Director, Data Centre Solutions, CBRE said: “The record level of take-up in 2016 was totally unprecedented. Q4 alone saw almost as much activity as any other full year. Over the course of 2016 all four markets saw more take-up than they each did in the previous two years combined. The numbers are quite astounding.

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“Cloud continues to dominate the landscape, with 70% of deals coming from this sector. These hyperscale cloud deals that once would have been unusual became the norm. We predict that cloud take-up will continue to increase in size as more hyperscale providers turn to large-scale build-to-suit facilities as an effective speed to-market option.”

This is particularly evident as the customer demand for data centre providers to deliver cloud hosting and colocation services increases. Research conducted by Cisco also found that 92 percent of workloads will be processed by cloud data centres by 2020.

Already, the European data centre market is showing clear signs of adjustment to these demands. One example, being the recent expansion of Colt’s London data centre, which stemmed from this continuous demand from its customers.

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