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BT's London Data Centre Expansion

BT has announced a £14 million GBP investment programme of new Data Centre expansion over the next four years. It has purchased a 960 metre squared acquisition of space in a new facility in South London, within the M25 ringroad area. BT also has an option to acquire another 960 square metres of space in a suite in the same facility.

In BroadGroup’s Data Centre Europe 2007 research, it is clear that the telecoms provider is seeking to boost its investment in Data Centre services in order to introduce a managed servces portfolio. BT is no exception and sees the Data Centre as being a critical advantage in providing hosted services. BT also sees a challenge in finding suitably equipped space in the London area “where 80% of the demand is.” The provider is constrained by the lack of readily available space within the M25 area.

The three main problems in looking for new Data Centre build space as reported by BT are: a lack of suitable power provided; the difficulty in obtaining planning permission for a change of use to a Data Centre, and finally the difficulty in establishing the legal ownership of a new site.

Without exception, all of the Data Centre providers interviewed for BroadGroup’s research identify their main challenges as being escalating Power & Cooling demands and the shortage of suitable real estate space for future Data Centre expansion. The lack of space opportunities could stifle future growth and make it more feasible for operators to explore new emerging markets where space is more freely available.

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