Data centre demands steady in EMEA

EMEA markets show little to no growth after experiencing rapid development for several quarters.

DC Byte, the leading data centre research and analytics platform, has shared findings and latest insights from its Q3 2021 ‘Data Centre Report’, published in partnership with Knight Frank, the leading global property adviser.

According to the report, after steady growth in Q1 and Q2 of 2021, this latest quarter has seen drop-off in new supply coming online. In EMEA, the total supply for the region increased by around 200MW (compared with 400MW in Q2 and just under 300MW in Q1) as many markets had reduced growth after seeing rapid development for several consecutive quarters.

There were some supply increases noted however, specifically in London with 57MW driven by self-build announcements. One further UK highlight in the Q3 2021 report is AWS receiving planning approval to develop sites in Didcot, Bracknell, and Swindon.

“Given the exceptional levels of activity over the first half of the year, it’s perhaps unsurprising that the data centre sector paused for breath in Q3,” said Ed Galvin, Founder and CEO at DC Byte. “However, this latest report still shows that, overall, the general trend is for continued increasing demand, and I believe that the levels of competition we have seen to date amongst data centre developers will remain just as fierce as we move into 2022.”

Markets further afield reported significant supply increases. After a total addition of 70MW in 2020, and low expansion in the first two quarters of 2021, supply in Johannesburg increased in Q3 with 80MW added, whilst in Moscow several small-scale supply developments by regional providers positively impacted overall figures. The supply increase here was nearly 40MW, similar to the Q1 increase.

Take-up did increase in the core markets during Q3. In Dublin consumption rose by just over 60MW, up from 34MW in the second quarter and 21MW in the first quarter. London sold an additional 25MW, and in Frankfurt, despite seeing no supply increase, take-up rose by 17MW.

Newly added to the EMEA market profiles in Q3 is Bucharest, with the market poised to become a data centre hub in south east Europe, and will soon see the first wholesale data centre development by Cluster Power.

The Data Centre Report also continues to review the APAC markets and includes both established data centre hubs such as Singapore, Hong Kong, Mumbai, Sydney, Seoul, and Tokyo; as well as those regions deemed to be fast growth markets - Hanoi, Bangkok, Shanghai, and Kuala Lumpur.

In APAC, Q3 2021 saw significant acceleration in development and deal making activity. The highlight of the quarter was reported as Vantage Data Centre’s acquisition of Agile Data Centre’s business - totalling almost 170MW across key markets of Tokyo, Osaka and Melbourne, as well as taking on PCCW’s data centre portfolio of 100MW across Hong Kong and Malaysia.

Total supply (live, phased, and under construction) in APAC increased by nearly 500MW in Q3, bringing total capacity in the region to over 7,500MW. Take-up was over 100MW, consistent with the quarterly average throughout 2021 to date.

APAC highlights:

  • Mumbai recorded the largest supply increase of nearly 200MW, increasing nearly 25 percent in Q3.
  • Shanghai added just over 170MW, a 10 percent increase in total market supply, with estimated aggregate supply now standing at well over one and a half gigawatts.
  • Sydney saw renewed interest from hyperscale operators, with Q3 supply increasing by a further 46MW and bringing the total increase for the first three quarters of 2021 to over 100MW.
  • Aggregate supply for Seoul jumped to around 5750MW, with about 120MW of this under construction and coming online over the next few years.

Ben Stirk, Partner and Co-Head of Global Data Centres at Knight Frank, said: “Activity in the global data centre sector continues to ebb and flow from quarter to quarter and region to region, with the slower rate of new supply in EMEA contrasted by a sharp supply increase in the APAC markets. The overall trend is very much upwards, with growth underpinned by the unabating appetite of hyperscalers to increase both market share in core locations and gain a foothold in emerging markets such as Africa. These ambitions combined are certain to support heightened activity levels in the quarters to come.”

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