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London data centre investment boom

UK capital registered overcapacity in Q1 2015.


London has bucked the trend in terms of supply of collocation by power and space when compared to the other three Tier 1 cities in Q1 2015.

The capital and M25 area registered an over-capacity, in contrast with Amsterdam and Frankfurt which both saw an increase in demand and growth of Tier 1 facilities.

According to the Collocation Markets Quarterly (CMQ) study, Paris has not registered any changes, but regional demand is still keeping the industry going.

All the markets apart from London have registered declines in both space and MW power availability.

Steve Wallage, managing director of BroadGroup Consulting said: "As a source of granular, detailed analysis of market developments in Europe’s four Tier 1 cities, CMQ is increasingly assuming authority in the market.

"We have seen a level of caution evident in the market this past quarter due to M&A and associated uncertainty around the market. However growth in demand from global Internet and cloud providers is still creating some buoyancy."

The research covered 41 data centre deals and developments, 31 cloud developments and 20 data centre connectivity deals across the four Tier 1 cities.

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