Locate away from the expensive and straining FLAP markets
Last month real estate consultancy firm CBRE published its Europe Data Centres Q2 2020 analysis that showed the impact of COVID-19 on the industry. The firm reported that a number of new build projects had been delayed to the end of Q3 or even Q4 and it now sees only a 14% rise in additional new supply compared to 24% last year. With site access restricted, tours of existing facilities were also affected impacting demand as well. The CBRE report focuses on the congested FLAP market where the impact of COVID is having significant impact.
At the same time, we all know that COVID has driven a huge acceleration in digitalisation with many businesses launching extensive work from home schemes many of which may outlast the pandemic. Consumer behaviour has also been changed with more online shopping, streaming of entertainment and use of video conferencing to stay in touch with friends and family. All of these are driving demand for data center capacity. Indeed, CBRE notes that demand has been high leading to extremely low vacancy rates in FLAP markets. It points out the impact of COVID on vacancy and land prices in key markets:
“Another trend seen in London and Frankfurt, accelerated by COVID-19, is land price inflation resulting from high demand in the logistics sector – a result of the online retail boom. This is forcing companies to consider new locations away from the traditional logistics – and data centre – hubs.” CBRE Europe Data Centres Q2 2020
So, it is especially important, against this background, that we have been able to open 2,200 m2 and 3MW of capacity with a new facility, at our Fetsund campus this month. In spite of COVID, this planned second facility at Fetsund, in the Lillestrøm municipality of Norway, was completed to programme and specification. Planning and building a new data center campus is a complex job involving many different skill sets and capabilities. Thankfully, we have a highly experienced team and great connections to local and regional authorities. We also have long-established partnerships with the suppliers needed to deliver high-quality builds to demanding deadlines.
Our new facility is already fully-leased, thanks to our proven track record of delivering purpose-built facilities that meet the exacting needs of clients, whether they are hyperscalers looking to quickly create points of presence in new markets, or enterprises looking to shift on premise data centers to colocation or a hybrid cloud model.
As with our existing facilities, the Fetsund campus not only benefits from 100% sustainable electricity supply from hydro generation, but also features the latest in evaporative cooling technology which drastically reduces the power overheads needed for cooling. Once under load, the PUE is designed to be sub 1.2 which, combined with the low price of power in Norway, will save customers significant energy costs. The campus also offers direct connection to major cloud providers, via the Nordic Connect Platform, customers can utilise dedicated high-speed ethernet connections to other DigiPlex sites across the Nordic region, providing opportunities for edge services located in other centers as well as additional redundancy and resilience requirements.
The demand for digital services, and the crucial data center infrastructure that supports them, is only going to rise. The timely completion of our latest campus, plus two further facilities due to be completed, on schedule in Q4 2020 and Q2 2021, means that we are well placed to ease capacity and cost issues facing those looking to establish data centers in Europe. Away from the expensive and straining FLAP markets, Nordic locations can deliver significant capacity quickly to support all types of customer. Get in touch to find out more about our new campus plans for the coming months.
Article written by DigiPlex Chief Service Delivery Officer, Dan Oldham.
Read more of our blogs on the FLAP markets and how they compare to COSH (Copenhagen, Oslo, Stockholm & Helsinki).