Data centre take-up hit record levels in 2007, reaching 1.7m sq ft across Europe, but it is unlikely to reach this figure again as a result of the credit crunch.
The increase in take up in 2007 represented a 33% jump on the combined totals of 2006 and 2005, according to CB Richard Ellis’s latest data centre research.
However, the agent warned that the effects of the credit crunch will impact on demand for this year and it expects a lower annual total for 2008.
Head of technology practice group, Europe, Middle East and Africa, Andrew Jay, said in the report: ‘We expect to see a slow start to the year in terms of take-up across all sectors but expect this to change in the second half of the year.’
The research predicted take up would still remain above 2006 levels, at around 700,000 sq ft.
CBRE also warned in the research of a potential oversupply, driven by the positive sentiment of 2007.
However it added that credit issues could well deter developers from building and as such expected no serious glut of space to come to the market in 2008.