Setting up new data centres

The report states that operators were quick to respond to the increased market confidence in 2012 by rapidly buying more data centre capacity. Examples of parties that set up new data centres last year include Equinix, Telecity, Interxion and Evoswitch. All in, co-location space in the Dutch capital increased by 18.3% over the year, which was the highest of the Tier 1 markets.

Crucial to Amsterdam's success in the data centre sector is the city's position as a connectivity hub. The Amsterdam Metropolitan Area is not only extremely well connected geographically but also digitally, thanks to innovative projects such as the Amsterdam Internet Exchange (AMS-IX). This 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, the Amsterdam Area is populated by a healthy balance of telecommunications and technology companies. 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.

Bright future

In 2013, the Amsterdam Area is likely to remain a popular destination to establish data centres. CBRE notes that in spite of the record increase in the supply of data centre capacity in Amsterdam, the vacancy level has not increased significantly (currently 13.23%). This represents a potential rate of absorption of less than two years given the current rate of demand and will serve to encourage further expansion.