Data Centre Triology 1/3 – The Moving Locations of Data Centres

The Past: Twenty years ago, the Internet boom was in full swing and as a result of the exponential growth in the use of the Internet the new data needed a home. This home was provided in the form of data centers being constructed across Europe mainly in the cities of Frankfurt, London, Amsterdam and Paris (FLAP).

Data Centre

The Current: Twenty years on, we are witnessing a further growth in the data centre market, this time being driven by the digitalization of traditional industries, the impending roll out of 5G and e-commerce. This growth will continue following trends, ie autonomous vehicles etc. This time the new data centres are not only being located in the traditional FLAP cities but in more remote locations being driven by environmental factors as operators and tenants of data centres are today more aware of the need for green solutions and better operating conditions. Due to the nation-wide coverage of digital solutions, such coverage would be also needed for data centres, but now in a smaller scale.

Another factor driving the data centre market is that a number of data centres, built in the late 1990s and early 2000s are coming to the end of their design life. The design of data centres has also advanced over the past 20 years leading to more efficient solutions and hence reduced operating costs.

Within the German market, Frankfurt continues to see growth in the data centre market, however we expect new data centres will now appear away from the traditional centres driven by:

  1. Availability of fibre-optic backbone

  2. Reduced land and construction costs

  3. Improved approval times for building permits

  4. Closeness to sources of environmentally friendly power supplies and the lack of available power capacity in the Frankfurt area

  5. Availability of staff for operating such facilities

Twenty years ago, water was a big risk to data centres, and still is, however twenty years later, Microsoft are investigating the positioning of data centres below water. In other geographical locations, we are already seeing data centres being built and operated in remote locations, like Emden, Cuxhaven Norddeich etc . Times are changing!

Chris Marshall

Market Sectors Leader Financial Institutions / Commercial Developers +49 162 2444484 Ask me a question
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