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Growth, Mergers and Acquisitions to Continue in Data Centre Sector Speakers at the Data Centres Europe event that took place in London at the end of March predicted a sustained growth in the market, and the likelihood of further acquisitions, mergers and new investment. Speakers at the flagship event attended by more than 250 representatives from 23 countries outside the UK consistently supported the view that as demand is outstripping supply, particularly in London where there is an increasingly serious shortage of space, further investment in the business sector is required. At the same time, the merger of Telecity and Redbus Interhouse earlier this year represented a prelude to further consolidation in the sector, likely to be compounded by the entry of new players in the market. Investment in the data centre sector is now being sought through debt and equity financing with the London market playing a key role. Europe-wide, demand is expected to increase in the Paris and Frankfurt markets and new deployment is being witnessed elsewhere. Investment in data centres is also occurring outside of London; the new Telstra facility in Cambridge, and the Sentrum data centre in Surrey are recent examples. Prices too are set to rise, evidenced now in the US and Europe, a view reiterated by the Colocation Exchange, the independent marketplace. The event included perspectives of Asia for the first time, with speakers from Singapore Telecommunications and VSNL International, both major players across the region and globally. The emergence of global data centre players through an alliance system or through acquisition was also foreseen, underlining industry confidence in the sector and also the increasingly strategic importance of data centres. BroadGroup, the consultancy who researches content for, and produces the event provided highlights from their new report, Managed Services in Europe. The report predicts a significant market emerging for managed services and the participation of many new players including data centres, integrators and telcos. The report also supports the view often heard during the networking breaks that new entrants into the European market are very likely. Europe represents around one-third of the global telecom market and as such is a critical market for players who are globalising. The Europe event which attracts many of the key decision makers in player organisations will continue to reflect and track changes in the market over the coming years, and identify the broad range of issues that players in the sector find critical.
Have you also seen our other consultant articles? Too Much
Greenwash?
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