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DCD article featuring our VP of International Sales, Tim Bawtree

24 February 2020
Hyperscalers and large enterprise customers must look more carefully at where they make their data center investments.
DCD article featuring our VP of International Sales, Tim Bawtree

The continuing growth in cloud deployments, plus the acceleration in big data-fueled by IoT, 5G and Industry 4.0 is putting pressure on data center capacity in Europe. Real estate consultancy CBRE suggests that 2019 was the biggest yet for data center investment in Europe, with 25 percent year-on-year growth in the FLAP markets. It predicts 2020 will be even bigger, driven by hyperscaler deals; but can the large established markets continue to support this growth?

Power issues, in particular, are demanding that hyperscalers and large enterprise customers look more carefully at where they make their data center investments. The Nordic region has crucial energy advantages that any business looking to locate a data center should understand: Cost, availability, and sustainability. Increasingly it makes more sense, commercially and ecologically, to put your data close to where the power is.

Green Power
With some of the lowest energy prices in Europe or indeed the world, it makes commercial sense to locate heavy data and compute loads in the Nordic data centers. According to EuroStat, Norway has the lowest cost Energy in Europe at 0.06 Euro per KWh, compared to more than double that (15 cents per KWh) in Germany. Sweden and Denmark are also among the lowest tariffs both below 10 cents per KWh. With the huge power drawn by today’s hyperscale data centers these low rates translate into millions of Euros in savings every year.

Read the complete DCD online article or read more from our VP of International Sales, Tim Bawtree, with his series of blogs on industry topics.

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