Jones Lang LaSalle has published its first Data Centre Barometer research report, which focuses on the European data centre real estate market and features an independent market survey .
It reflects the views and expectations of key industry stakeholders from both the developer/investor and occupier communities, representing approximately 9.5m sq ft of data centre accommodation.
Mark Larard, director of Jones Lang LaSalle’s Data Centre Advisory Group said the research was the first of its kind. ‘It confirms that the data centre market is relatively buoyant in comparison with other markets, especially when you consider everything else which is happening around it,’ he said.
‘Many data centre occupiers still have data storage issues, which they cannot postpone indefinitely. The survey indicates that by the second half of 2009 they will need to re-enter the market, but will use outsourced data solutions to enhance their occupational strategies, as these will be more acceptable bearing in mind their capital expenditure restrictions.’
Survey highlights from Data Centre Barometer include:
• Over 70% of developers and investors believe demand for European data centre space heavily outweighs the current supply of appropriately fitted space.
• Over 80% of respondents indicate that their data centre portfolio was “in house” and of that space, 40% of respondents indicate that over 80% of their technical data centre space was being actively used.
• Of those who had increased floor space during the year (2008), nearly half of occupier and operator respondents have seen an increase in their capacity by 20% or more.
• 60% of respondents expect little change in the size of their data centre footprint in the first six months of 2009 and a further 10% remaining undecided. The balance swings in favour of increasing data centre stock in the second half of the year, with nearly 50% of respondents indicating they expect some expansion, although 40% of respondents expect stock levels to remain the same. ( only relates to In house respondents)
• Nearly 75% of respondents report an expansion of their floor space within a third-party managed facility, although around 60% of these expansions had only been by 10% or less.
• 70% of respondents indicate that they would keep their occupation profile at the same level in first half of the year. Over 50% of respondents expect to keep their outsourced data centre footprints at the same level, whilst over a quarter envisage taking on more space in the second half of year.
• Power, (availability and cost) does not appear to be as significant a driver to respondents as may be perceived by many industry observers - 30% of respondents disagreed that power was the most important driver of their data centre decisions.
• Nearly 50% of the survey respondents believe that Green issues will be the major driver with regard to their data centre strategy over the coming year. However, only one third of developers and investors shared this view. (Over 50% of all respondents indicate that they are not finding it difficult to quantify current energy efficiency of their data centres.
• Over 50% of respondents agree that outsourcing will become more prevalent as a data centre solution over the next 12 months. The relatively high proportion of respondents that neither agreed or disagreed potentially reflects the uncertainty with regard to the local economies and therefore uncertainty with regard to demand for increased data centre space.
• Around 80% of all respondents agree that the implementation of virtualisation technologies to increase data centre space efficiency is likely to increase significantly over the next year. Around 60% of respondents disagree that cloud computing will reduce the need for more data centre space over the next 12 months.
Larard added: ‘In the data centre market, supply closely aligns with demand; the development pipeline is not as astronomic as those who wish to criticise the industry claim and cannot all come on line simultaneously.
‘Therefore the market looks likely to continue on its path of healthy growth and sustained demand throughout the year.’