BroadGroup: Competition in Colocation In Europe’s Data Centers Steps Up In Q1 2015

Amsterdam, Frankfurt and Paris have witnessed declines in colocation space and MW power availability, according to BroadGroup’s new Colocation Markets Quarterly (CMQ) study. London has in contrast to the other three Tier 1 cities, bucked the trend in terms of supply of colocation by power and space.

Where Amsterdam and Frankfurt are experiencing strong demand and growth at present, over-capacity remains present in the London / M25 market. Paris is presently static although demand is evident at regional level.

Both Liquid Web and Phoenix NAP have recently announced an expansion into Europe with EvoSwitch. These U.S. companies have signed contracts for the provisioning of colocation space in EvoSwitch’s AMS1 data center in the Amsterdam region.

Frankfurt has also been bolstered by the news that Interxion is to build a new data centre on its Frankfurt campus with a capex of around €92 million and the first two phases are scheduled to open in the first half of 2016. A large number of other developments are highlighted in BroadGroup’s CMQ study.

The CMQ study this quarter covers 41 data center deals or developments, 31 cloud developments and 20 data center connectivity deals across the four Tier 1 cities in Europe.

“As a source of granular, detailed analysis of market developments in Europe’s four Tier 1 cities, CMQ is increasingly assuming authority in the market,” said Steve Wallage, managing director of BroadGroup Consulting. “We have seen a level of caution evident in the market this past quarter due to M&A and associated uncertainty around the market. However growth in demand from global Internet and cloud providers is still creating some buoyancy.”

BroadGroup Consulting 

The quarterly study published by BroadGroup also tracks both wholesale and retail data center pricing and provides a comparative analysis, demand drivers, and the key trends across verticals.

An analysis based on market intelligence gathered by BroadGroup Consulting also provides the key reasons that deals were lost or won and the primary factors involved in each decision. The past quarter reveals how for example the quality of data centers and their location has markedly increased. 

The Colocation Markets Quarterly (CMQ) study is available by annual subscription from BroadGroup.

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