Data‑centre Rumble 2017: London Strikes Gold
What went down in the four biggest European markets (Frankfurt, London, Amsterdam, Paris)
Back-to-back boom years in 2016 and 2017 have turned the data‑centre scene in these cities into a real‑life office of the future. According to CBRE, Europe’s top four data‑centre hot spots have been pumping out double the capacity of any single year in the five‑year span that started in 2016.
Why did 2017 feel like a mega‑sale?
- Over $25 bn in global M&A—more than three times the 2016 haul.
- Many of those deals landed right in Europe, keeping the continent on the front foot.
- CBRE predicts the trend will keep rolling into 2018 because investors are still eager to stake a claim in the European market.
Supply side: a record 202 MW added
Supply didn’t sit idle. Across FLAP we added 202 MW of new data‑centre capacity, a record haul 70 MW more than any previous year. CBRE’s pipeline looks solid: another 180 MW is slated to roll into the core markets in 2018.
Demand: Cloud firms rule the day
In total, we filled 119 MW of demand—right on target with CBRE’s Q2 forecast of 120 MW. The heat was mostly from cloud giants, with London taking the lion’s share—45 % of the total take‑up, or 54 MW of the four markets.
CBRE’s crystal ball says 2018 will bring yet another strong demand wave—expecting over 100 MW of take‑ups.
Expert Take‑away
Mitul Patel, Head of EMEA Data Centre Research at CBRE, summed it up:
“2017 proves that the surge in European data‑centre activity is no one‑off thing. In 2018, hyper‑scale companies will keep screeching past the limits in major cities, possibly feeding a rise in build‑to‑suit deals. We’re also watching big Chinese tech firms start to sniff around Europe, pulling in more capacity— a welcome boost for investor appetite and for keeping prices up.”
Why should you care?
- Data‑centres are the backbone of our digital lives—any hiccup means slower streaming, delayed meetings, and missed deadlines.
- Investors watching the market will chase the high‑growth sectors, so staying in the loop could translate into smart portfolio moves.
- The rising supply and demand make for a competitive environment, which can drive innovation and cost efficiencies across the board.
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