CBRE expects that take-up in the core FLAP markets will remain high at 200MW for the next two years as the hyperscale companies continue to utilise wholesale colocation services in these markets.
The developer-operators, confident of prolonged strong demand, are now building at a larger scale than ever before to secure these requirements. To this end, there was 314MW of new capacity brought online in the FLAP markets during 2019, equating to a 24% market growth This new capacity would require EUR 2.2bn of capital to deliver.
Mitul Patel, Head of EMEA Data Centre Research at CBRE, commented:
“The data centre market in Europe continues to grow like no other and represents one of the most exciting asset classes anywhere. The 201MW procured in 2019, as well as pre-lets and optioned capacity, is a remarkable achievement. Our expectation is that this level of activity will continue as the hyperscalers continue their accelerated procurement of data centre services.”
“As the hyperscale companies roll out their services more widely across Europe, the rate of hyperscale procurement of data centre capacity in other European cities will increase rapidly. As a result, markets such as Madrid, Milan, Warsaw and Zurich, will witness a substantial increase in colocation activity.”