Tuesday 15 December 2015

European colocation market growth buoyed by M&A and Safe Harbour, says CBRE

The European datacentre colocation market continues to go from strength-to-strength, with investment in the sector nearing $9bn in 2014, according to research from global property advisor CBRE.

The organisation cited the rise in mergers and acquisitions in the colocation sector during the second quarter of 2015 as a key investment driver, and has fuelled market growth by 6% overall in 2015.

The second half of 2015 has seen Equinix make a $3.6bn bid to acquire fellow colocation provider Telecity Group, a deal that looks set to shake up the competitive landscape across Europe in 2016. This is particularly in the wake of the European Commission’s ruling that both firms must sell-off some of their facilities in London, Amsterdam and Frankfurt for the deal to go ahead.

Aside from mergers and acquisitions (M&A) activity, the research picks up the uptick in interest from large-scale IT infrastructure and web companies in opening datacentres in Europe, with London emerging as the most popular location.

“IT infrastructure companies are dominating the European datacentre market. We’ve seen overall demand dynamics mirror what these firms are doing,” said Andrew Jay, head of datacentre systems at CBRE.

“The implications are wider as well, with operators seeing proof that deploying an on-off ramp to the cloud in a datacentre will attract enterprise customers, so securing the IT Infrastructure providers to your premises is becoming vital.”


Read More: http://www.computerweekly.com/news/4500258245/European-colocation-market-growth-buoyed-by-MA-and-Safe-Harbour-says-CBRE

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