Record numbers for Amsterdam’s data centres
According to a report by real estate consultants CB Richard Ellis, who look at the data centre market in Europe, a total of 11.7MW has been sold at mid-year – the highest half-year total recorded so far. The fact that the first half of 2014 outperformed 2013 is even more striking when taking into account that 2013 was a record year. Altogether, co-location space in the Dutch capital increased by 18.3% from 2012 to 2013, which was the highest increase of the Tier 1 markets.
Moving to the cloud
According to the report, connectivity-led demand continues to be the principal source of larger transactions, with cloud, telecom and content providers particularly active. In addition, a build-up of enterprise demand is now also said to be generating new demand. On the other hand, the supply has increased as well. In the first six months of this year, an additional 8.6 MW of new capacity has been released in Amsterdam, the majority coming with the opening of the final phase of Telecity's AMS 5 facility.
CB Richard Ellis expects that the demand for storage will increase further during the second half of this year. More spending on cloud services is one of the drivers in increasing IT spending by firms all over the globe.
Crucial to Amsterdam's success in the data centre sector is the city's position as a connectivity hub. The Amsterdam Metropolitan Area is extremely well connected, not only geographically but also digitally, thanks to innovative projects such as the Amsterdam Internet Exchange (AMS-IX). The AMS-IX is one of the world's largest digital exchange platforms and is renowned for its reliability, quality and low costs.
Appealing to the ICT sector
Importantly for the data centre industry, there is a healthy balance of telecommunications and technology companies in the Amsterdam Area. The advantageous tax climate and excellent digital infrastructure attracts major international ICT companies to the region, which is fast becoming the software and ICT capital of Europe. More than 50% of all Forbes Global 2000 companies active in the ICT sector have an office in the Amsterdam Area.