March 2, 2005 — (WEB HOST INDUSTRY REVIEW) — According to UK-based IT consultancy BroadGroup (broad-group.com), a survey of the companies participating in the forthcoming DataCentres Europe (datacentreseurope.com) event shows that little data center capacity remains in London, England, one of Europe’s key Internet hubs.
Broadgroup says that due to space and power restrictions, it is unlikely that current operators will open new London facilities, or that other companies will try to enter the data center market in London.
“The barriers to entry are significant. It is incredibly difficult to build new data centers in London now, to have the right level of power available and to have the connectivity partners to create sufficient market competition to ensure that the customer gets the best deal,” says Mike Tobin, CEO of data center operator Redbus Interhouse.
The situation may lead customer to see the advantages of locating in other cities, analysts say.
“With the London data center market close to being sold out again for the first time since 2000, it will be interesting to see whether this will kick-start the markets across Europe at long last,” says Tim Anker, founder of The Colocation Exchange, an industry sponsor for DataCentres Europe. “Locations such as Amsterdam, Frankfurt and Paris may stand to benefit from frustrated demand found in London.”
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