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CBRE Global Corporate Services

European Data Centres
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STRONGEST H1 ON RECORD FOR EUROPEAN DATA CENTRES
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Headlines
Highest H1 take-up recorded
Mid year take-up in Frankfurt more
than double that of H1 2013
H1 take-up in Amsterdam now
higher than the total for 2013
Data centre expansion activity
increasing

In this issue
Executive Summary
Supply & Availability
Take-up & Demand
Market Focus
London
Frankfurt
Paris
Amsterdam
Madrid
Key Statistics
Definitions
A combination of stable letting activity in the second quarter and an
exceptionally strong Q1 has resulted in colocation take-up for H1 reaching
unprecedented levels. A total of 38MW was sold in the first half of 2014, 68%
higher when compared than at the equivalent stage in 2013 and the highest
total recorded for an opening six month period. Connectivity-led demand
continues to be the principal source of larger transactions with cloud and
associated companies particularly active this year. A build-up of enterprise
demand is now also beginning to generate new market interest.
The highest take-up this year has been in Frankfurt and Amsterdam. In
Frankfurt 13.2MW has been sold in 2014, more than twice the amount
transacted in the same period of last year. Take-up in Amsterdam now
exceeds that achieved in the full year of 2013. At mid-year a total of 11.7MW
has been sold, the highest H1 total recorded.
Across the markets, operators continue to make prudent investment decisions
with regards to new data centre capacity. At the end of the second quarter an
additional 44MW has been added to European supply in 2014 which
compares to 30MW in the same period of 2013. This statistic indicates an
acceleration in development of new capacity particularly focussed on the
stronger markets led by both existing and new customer demand.
AVAILABILITY
-3.7% y-o-y Jun 14
EXECUTIVE SUMMARY
AS AT QUARTER 2 2014
Supply 754MW
Availability 142MW
Colocation take-up quarterly 10.8MW
Colocation take-up annual YTD 38MW
SUPPLY
+9.3% y-o-y Jun 14
COLOCATION TAKE-UP
+12.3% y-o-y Jun 14
EUROPEAN TIER 1 COLOCATION MARKET AS AT Q2 2014
Q2 2014
Beginning this quarter we have rebased our data centre market statistics and
will from this point report in power (Kilowatts kW and Megawatts MW) as
our preferred standard metric. It is our opinion that this step will not only
align our market commentary with current industry reporting practices but
also facilitate analysis and comparison to other sources of available market
information.
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Supply (MW) LHS Take-up (MW) RHS
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The sharp uplift of new data centre
capacity recorded in the first quarter has
not been repeated in Q2 and although
several small additions have been made
stronger letting activity has meant that
total availability has fallen. Total supply
at the halfway point of 2014 amounted
to 754MW of which 142MW was
available for customer purchase. A
review of availability recorded in recent
years suggests that despite the reduction
in Q2, overall the current level remains
high, and it is our opinion that surplus
capacity could sustain pressure on
pricing in some areas.
Driving the higher level of vacancy is an
increase in the rate at which new
capacity is released to the European
market. As at the end of Q2 44MW
had been added to European supply in
2014 compared with a total for the year
of 51MW in 2013. Increase in operator
build activity is for the most part being
led by stronger customer demand which
will provide a counter balance to
maintain market equilibrium.
London currently has the highest level of
vacancy in Europe. Total availability
recorded at the end of the second
quarter has increased to 75MW of
customer power, a historic high. The
significant wholesale presence in the city
somewhat distorts this figure making
comparison difficult.
COLOCATION MARKET HIGHLIGHTS
However, analysis of retail facilities in
isolation indicates that although London
still has the highest amount of available
customer power, this remains
proportionate to annual levels of take-
up.
The markets of Frankfurt and
Amsterdam continue to attract particular
focus from operator investment
programs in 2014. Both of these cities
are currently experiencing particularly
strong customer demand and this is
encouraging a sustained series of new
build out programs.
In the first six months of this year an
additional 8.6 MW of new capacity has
been released in Amsterdam, the
majority coming with the opening of the
final phase of Telecity's AMS 5 facility.
In Frankfurt a further 11.5MW has been
added with the acceleration of
Interxion's FRA8 contributing to this rise.
Due to an increased level of customer
orders however availability in both cities
remains consistent with 12 months ago.
Looking ahead, the development
schedule over the coming 12 months
indicates the completion of some
significant schemes across the major
markets. The rise in total capacity is
likely to be close to 75MW.
Included in that is the first phase of the
Equinix LD6 facility with a capacity of
1,385 cabinets which is due to open in
the first half of 2015 and the new
11MW Virtus facility at Hayes which is
due for completion by the end of this
year. In Frankfurt the 4,400 sq m
second building of the e-shelter
Frankfurt 3 campus is scheduled for
Q1 2015 and Interxion expect the final
two phases of their FRA8 facility in the
first half of 2015.
SUPPLY & AVAILABILITY
Charts 2 & 3: Historic Colocation Supply
Colocation Supply and Availability (MW) Colocation Supply Annual Increase (MW)
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Q2
Contracted Power Available
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New Supply
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SUPPLY & AVAILABILITY
MARKET NEWS ROUNDUP
As leading economic indicators of growth, inflation and
employment data continue to point towards a more
widespread economic recovery across Europe, prospects for
the technical real estate market also continue to be
characterised by a degree of overall positivity. This ongoing
buoyancy of the data centre industry has encouraged new
product to be delivered to the market during the second
quarter of the year as well as some significant requirements
being satisfied.

Both retail and wholesale colocation providers have
continued to announce a series of openings and expansions
of data centres during the period. Indeed the boundaries
between these two types of data centre provider have
become increasingly blurred as both have become
increasingly willing to offer a product that has traditionally
been the territory of the other.

Colocation provider, Interxion reported that it had brought
forward the delivery of two further phases totalling
approximately 2,600 sq m of equipped space at its AMS 7
facility in Amsterdam, whilst in Frankfurt, it will accelerate
the completion of the two remaining phases of the FRA 8
data centre to provide a further 1,800 sq m.

Elsewhere in Europe, Equinix announced the start of fitting
out its new ZH5.2 data centre project in Zurich which is set
for completion by the end of this year, whilst in Sweden,
DigiPlex received planning consent to build a 6,000 sq m
technical facility on a former factory site in Upplands Vasby.
When completed the facility will become Stockholm's first
data centre offering over 20MW of power sourced from
renewable hydro and wind, offering both retail and
wholesale space.

In Estonia, Astrec Data is hoping to attract Russian IT
companies to the new 1,600 sq m data centre it is building
in Jhvi in the north-east of the country. Elsewhere in the
Baltics, the Latvian data centre company DEAC is set to
invest in a new facility to be built in Riga.
Being one of the strongest sectors driving the data centre
market over recent years, IT integrators, carriers and hosting
companies continued to report expansions and new builds
during the quarter. For example, in Italy, local ICT provider,
Fastweb announced plans to invest some 25 million in two
new data centres in Milan and Rome and in Scandinavia the
UK hosting company Hydro66 announced that it has made
a significant investment in a data centre in Boden, located
close to the Arctic Circle in northern Sweden.

In the UK, Iomart opened a 1,500 sq m extension to its
Maidenhead data centre adding capacity for a further 630
racks, Zen Internet completed the next phase of its North
West Data Centre, whilst Colt reported that it has expanded
its Welwyn Garden City facility by 1000 sq m of technical
space. In addition, the same company announced that it
would expand its Hamburg facility by a further 565 sq m.

In France, data centre group, CHOREUS Datacenter has
started construction of its new Paris area facility which it is
claimed will be the first such data centre to be powered by
trigeneration gas. The facility will eventually comprise 8
units of 500 sq m technical floor space each, whilst TDG
opened a new facility in Rennes and reported that it would
open a new data centre in Aix-Marseille later in the year.

Elsewhere, BT announced the opening of its third 1,200 sq
m data centre located in Rotterdam, whilst in Austria Linz AG
Telekom opened a new 440 sq m facility and in Switzerland,
Tochter Fiber Services, a subsidiary of Swiss power company
CKW, reported that it intends to open a new 1,200 sq m
facility in Lucerne which is expected to go online in mid
2015. The data centre has already secured the Swiss insurer
Suva as a tenant.

In Moscow, Russian mobile operator, MTS opened a new
1,500 sq m data centre at a reported cost of some RUB 600
million and in Poland, local telco 3S expanded its data
centre in Katowice and announced plans for a new facility in
Bytom whilst IT company, Qumak completed a new data
centre in the city of Grodzisk. In the Czech Republic, search
engine company Seznam.cz, has purchased a site on the
industrial park in the eastern suburbs of Prague, and intend
to build a 2,500 sq m data centre.

Reports of development activity in the second quarter of the
year particularly on a speculative basis remain limited.
Within the UK, for example, the main example to note saw
Scottish property company AOC Group submit its planning
application for a 6,970 sq m data centre at Queensway
Business Park in Glenrothes, Fife.
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Take-up in H1 highest on record.
An exceptionally strong beginning to the
year followed by steady letting activity in
Q2 has meant that at the mid-year point
the total amount of transacted power
has surpassed the highest recorded half
year total. Take-up in the second
quarter amounted to 10.8MW, on par
with the five-year average for this
period. However the year-to-date total
has now reached 38MW, a historic high
for the H1 period and a total which
serves to substantiate the noticeable
improvement in customer demand for
this year.
Continuing to drive demand across the
major markets in Europe is connectivity-
led requirements from content, telecoms
and cloud providers. Cloud providers in
particular have been especially active,
securing data centre capacity aimed at
servicing expectant growth in demand
from end-user groups. Interxion noted
in their Q2 earnings presentation that
cloud platform providers currently make
up approximately 25% of their business.
This provides an example of the growing
relationship between cloud and
colocation businesses.
COLOCATION MARKET HIGHLIGHTS
Given the importance placed on
connectivity it is of little coincidence
that the markets of Amsterdam and
Frankfurt are experiencing the strongest
levels of demand. Frankfurt currently
has recorded the highest amount of
take-up of any of the major markets. A
total of 13.2MW has been transacted
so far this year which is just short of the
14.7MW of contracts awarded in
2013. In Amsterdam take-up now
exceeds that achieved in the full year of
2013. At the halfway point 11.7MW
has been sold, the highest total on
record for an H1 period.
Take-up in Europe's largest market,
London, currently lags behind both
Amsterdam and Frankfurt. A total of
8.6MW has been transacted so far this
year, which compares to the 8.3MW in
H1 2013. However, a considerable
amount of latent demand has built up
in London which is currently generating
a rise in the number of new
requirements coming to market in
2014. It is our opinion that the latter
half of this year will see many of these
complete resulting in improvement to
take-up.
Although commented upon in relation
to the London market in this
publication, the topic of churn is likely
to have influence on new business for
all operators moving forward.
Customer retention levels remain
exceptionally high for data centre
operators due to the extreme
complexity, cost and risk associated
with moving IT infrastructure.
However, upcoming lease events in
some cases will involve a customer
desire to reduce their IT footprint and
benefit from the gap between renewal
rates and current market rates. In
instances of where location flexibility is
present, this may encourage some
customer movement which in our
opinion presents an additional source
of opportunity for operators to win new
custom.
TAKE-UP & DEMAND
Charts 4 & 5: Historic Take-up Analysis
Take-up by Market Sector (MW) Take-up by Location (MW)
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TAKE-UP & DEMAND
MARKET NEWS ROUNDUP
The second quarter of 2014 has seen levels of take-up of
technical real estate remain buoyant, continuing the
confidence that was evidenced during the first three months
of the year. The improving economic landscape across
Europe continues to benefit the industry as companies plan
for growth and execute IT strategies.

Increasingly the use of third parties continues to play a lead
role in the take-up of data centre infrastructure as
corporates embrace IT integration and outsourcing
solutions. It is unsurprising therefore that these types of
occupiers and operators of technical facilities were involved
in much of the most notable take-up of data centre space
over the quarter.

For example, BT has announced the expansion of its data
centre capacity in France, taking space in the new recently
opened Equinix facility in Paris, whilst Indian
telecommunication services provider, Tata Communications,
expanded its global data centre footprint through a strategic
partnership with Interxion in Germany and Austria, and
Zenium Technology Partners confirmed that Turkey's largest
systems integrator has entered into a lease agreement to
secure space around 480 sq m in Istanbul One Zenium's
data centre in Istanbul.

Much of the rise in activity amongst IT integrators and
hosting providers is driven by the need to supply European
and global enterprises with IT services and support.
The past three months has seen a number of notable
examples of these types of transactions. For example, IBM
together with Fiat, Chrysler Group and CNH Industrial has
announced a multi-year strategic services agreement to
manage the IT infrastructure and services that support day-
to-day operations and locations on a global basis. Other
examples saw BT win a contract with De Beers Group to
orchestrate a wide range of IT services across 70 sites,
including exploration and mining locations across the world,
whilst CGI announced the renewal and expansion of its
contract with energy producer EDP to provide data centre
and infrastructure management services and DNB signed an
agreement with HCL Technologies that will see HCL manage
the IT infrastructure services and application operations for
all DNB businesses across Norway and its key international
locations.

Retail colocation providers also enjoyed a busy quarter with
their readily available product proving an attractive
proposition to many. For example, Interxion reported that it
will provide Minds + Machines with data centre services in
Dublin, whilst also securing Dutch ICT solution provider
Ctac as a client in its Amsterdam facility. Also in Holland,
EvoSwitch announced that Detron had chosen it for the
expansion of its data centre footprint, and The City of
Amsterdam chose KPN to provide colocation services for its
infrastructure in its Almere facility.
In the UK, Naglotech chose City Lifeline's London data
centre to operate its managed IT operations whilst C4L
announced the signing of a three-year deal with Pulsant and
City University London expanded its presence at Custodian
Data Centres' facility in Maidstone. In addition, Next
Generation Data Centres continued to add to its facility after
securing AirVM and Azla as clients.

Of course, large enterprises are also been willing to take
space directly themselves or through retaining control of the
systems that sit on the IT platform. For example, in Ireland,
Dublin County Council granted planning permission for a
second data centre for Google located adjacent to the
company's existing facility in the city which will include the
construction of a 30,361 sq m facility, whilst German
software firm, SAP reported that it will invest in two data
centres in Russia in a bid to expand its cloud service offering
in the country.

In Norway, Green Mountain completed building a Tier III
data centre in Rjukain which it let to the Norwegian banking
group, DNB and in Belgium, ICTroom has announced it has
won a contract to supply a 2 MW data centre for a Belgian
government department.
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TAKE-UP & DEMAND
INVESTMENT AND OUTLOOK
Investment

One of the characteristics of the data centre market during
the second quarter of 2014 is the amount of merger and
acquisition activity, reflecting the on-going consolidation of
market and the desire for investors to inorganically increase
exposure. Notable deals in Europe during the period saw
French IT providers agree a deal which will see Stora buy
Steria for a price estimated at 730 million, whilst also in
France, French integrators Atos announced that it will pay
around 620 million to acquire Bull.

On a global basis, Level 3 acquired tw telecom for a
reported US$5.7 billion whilst the US fibre network company
Zayo Group bought French provider, Neo Telecoms and UK
based Geo Networks Ltd during the quarter. Other notable
transactions saw UK based provider of managed services
and colocation company Pulsant bought from Bridgepoint
Development Capital by private equity firm Oak Hill Capital
Partners. Terms of the transaction were not disclosed but
media reports suggest the deal could be in the region of
200 million. In addition, Manchester-based infrastructure
provider M247 acquired Web.Solutions Direct for an
undisclosed seven-figure sum.

Elsewhere in Europe, Claranet acquired the Dutch cloud
services provider NovaData for a reported 7 million whilst
also in Holland IS Group announced the acquisition of
cloud hosting provider WideXS. The Channel Islands based
communications provider Sure, reported that it will acquire
Foreshore, a Jersey based data centre and cloud services
provider whilst Capita has acquired IT network services
provider Updata Infrastructure (UK) Limited for a cash
consideration of 80 million.

In addition, the quarter also saw a number of significant
examples of companies raising finance to help fund
expansion programmes. In the UK, DataCentred
announced that it secured combined funding from the
Greater Manchester Investment Fund, venture capitalist Jon
Moulton, Perscitus Advisers, and The North West Fund for
Venture Capital. Also Liverpool based data centre provider,
Aimes secured funding from Santander and Skyscape Cloud
Services Limited secured a 4 million minority stake
investment from Business Growth Fund to accelerate its
growth in the UK public sector market.

This type of activity was not limited to the UK. In Russia,
Moscow data centre operator, iXcellerate increased
investment from an existing investor, Sumitomo, and DigiPlex
became the first to launch a bond transaction to finance the
construction phase as well as providing long-term financing
for its newest data centre located just outside Oslo, Norway.
The inaugural five-year bond transaction was successful in
raising approximately 50 million.
Forecast

As prospects in the economies of Europe continue to
improve, albeit against a background of escalating Middle
East conflict and a destabilised Ukraine, the data centre
market should continue to grow. Recent research from
Gartner suggests that global IT spending will rise by over 2%
to US$3.7 trillion in 2014. They do note, however, that
data centre system spending will be the slowest growing
category in 2014, rising only 0.4% to US$140 billion due to
factors such as lower-cost storage options in the cloud and a
move away from high-end server systems.

Growth in spending on cloud services and products is set to
be an important component of this as enterprises move their
information technology service applications and
infrastructure to a cloud-based architecture. The public
cloud services market for example, is expected to reach
US$191 billion in revenues by 2020, more than tripling the
US$58 billion in revenue in 2013, according to a recent
report by Forrester Research.

A new survey commissioned by Digital Realty indicated
further positive news for data centre capacity growth for
European companies. In the research undertaken by
Forrester more than 90% of respondents indicated they are
planning some form of expansion within the next four years.
More than one-third (38%) of respondents expected their
existing data centre budget to grow between 5-10% in the
next 12 months, with an additional 7% of respondents
expecting to increase their data centre budget by more than
10% in the next 12 months.

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However most of the completed
transactions in London this year have
fallen below the 500kW mark and this
has resulted in the lower amount of
take-up.

One specific topic that may have
significant influence on take-up levels
moving forward is that of customer
churn. Telecity highlighted in their
recent results a rise in recorded churn
rates in part attributed to the closure of
Prospect House but also because of
underutilisation of space from some
customers. The latter, in our opinion,
could become more prevalent moving
forward as London's enterprise
customers with excess space look to
downsize their footprint.

Those customers with an imminent
lease event will also seek to benefit
from the competitive pricing
environment where the delta between
prices paid on an maturing indexed
The level of take-up in London remains
behind that of its closest European
neighbours at the mid-year point of
2014 despite a noticeable rise in new
enquiries. Total transactions for the
year amount to 8.6MW, on par with
the equivalent period in 2013,
although a little disappointing given
the renewed interest evident this year.
It is the improving economic
environment which is encouraging
corporate end users in particular to
consider their future IT needs. Recent
results from the IMF suggesting that the
UK economy is currently growing faster
than any other of the G7 states.
Against this backdrop a restoration in
corporate confidence is gathering pace
and this is fuelling an upturn in data
centre requirements both from end
users themselves and also from
potential partnering organisations such
as cloud service providers.
LONDON
contract and new business contract
pricing has grown in the past 12-18
months. These two factors combined
may encourage some customers who
have locational flexibility to consider a
move in order to obtain the best
possible solution at the lowest price.
Should customer churn rates begin to
rise this will impact the supply of new
space. As at Q2 2014, total supply
stood at 326MW with 75MW currently
available. The result of customer
downsizing and relocation could be a
slower rate of new supply as operators
look to refill vacated space before
investing further in new inventory.
MARKET FOCUS
FRANKFURT
Demand for data centre space in
Frankfurt has exceeded that of the
other major markets this year with the
total of new customer contracts close to
that secured in all of 2013. Take-up
for the first half of 2014 amounted to
13.2MW just short of last year's total of
14.7MW but well ahead of the 5.6MW
contracted in H1 2013.

The strength in the data centre market
has come at a time when the German
economy is beginning to falter. The
federal statistics office in Germany
recently reported an economic
contraction of minus 0.2% in the
second quarter. The result of this in
future could be to derail potential new
requirements from some prospective
customers, particularly enterprises
although there is little sign of this at
present.

Furthermore, any impact of enterprise
business confidence loss is likely to be
minimal to demand at least for the
shorter term.
Similar to Amsterdam, the majority of
new contracts and requirements can be
attributed to global technology
companies, content providers and
cloud infrastructure companies. More
than 50% of identified take-up this year
has derived from customers who fall
under one of these segments with new
capacity being secured to
accommodate new product
development and the expectant
increase in enterprise demand for
cloud services in particular.

The heightened demand this year has
meant that availability of customer-
ready space has been reducing. At the
close of the second quarter
approximately 22MW of customer
power was available although not all
of that capacity has space fitted out.

For some operators strong customer
interest has brought about a revision to
expansion plans.
Interxion announced in April of their
intention to accelerate the construction
of FRA8 which will add 6MW customer
power when completed in 2015.
Similarly e-Shelter continues to make
progress with construction of their
second building at the Russelsheim
campus. Completion of this phase is
expected in early 2015.
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At present though the slower rate of
overall demand has meant that there
has been little movement in supply this
year. Total supply amounts to 120MW
with 18MW currently available
although when considered in
conjunction with power assigned to
unbuilt phases of data centres
availability is much higher. This
imbalance in supply and demand has
led to pricing in the Paris market
becoming particularly competitive in
recent months.
serving to discourage most end user
organisations from committing to all
but essential spending activity.

Comparison can be drawn with London
in that in anticipation of an upsurge in
corporate outsourcing cloud providers
are beginning to take additional space.
During Q2 Interoute became the latest
example of service provider expansion
adding 400 sq m to their Paris data
centre. With Paris retaining one of
Europe's highest concentrations of
global enterprise occupiers it is our
opinion that cloud service providers will
increasingly factor in future demand.
Data centre letting activity remains
relatively subdued in Paris with the
dominant enterprise sector remaining
overly cautious when considering
longer term spending commitments.
Take-up for the first half of this year
stands at 4MW, slightly less than the
4.4MW achieved in the same period of
2013, and the lowest of the major
markets.

Business confidence and therefore
growth in demand continues to be
undermined by a weak national
economy. The latest figures from
INSEE indicate a second successive
quarterly GDP growth rate of zero
percent in 2014. This is currently
PARIS
MARKET FOCUS
AMSTERDAM
In Amsterdam the amount of power
reserved in new customer contracts
awarded this year has now passed the
level achieved in all of 2013. At the
midpoint of 2014 total transactions
amounted to 11.7MW; this compares
to the 11.3MW sold in total last year.

Connectivity-driven demand continues
to dominate the European data centre
landscape seeing cloud, telecom and
content providers particularly active.
This type of customer is drawn to
network-rich Amsterdam with access to
the AMS-IX network having significant
importance to growth and delivery of
services.
Typically the larger contracts tendered
in Amsterdam derived from one of
these sectors with the contribution to
take-up in the last 18 months close to
50%.

Strong demand continues to provoke a
positive response from colocation
operators with regard to new
investment. During the second quarter
Telecity announced that the final 5MW
of capacity has been opened at their
AMS 5 facility. This followed the
announcement from Interxion in April
to speed up the delivery of new
capacity at their AMS7 data centre with
a decision also made to increase
The consequence of this is that
enterprises remain reluctant to commit
to undertakings which involve
significant change and investment such
as data centre outsourcing, and are
electing to hold firm current positions.
The scale of data centre capacity
transacted in H1 2014 reflects the
enterprise apathy. A total of 490kW
had been contracted by the mid-point
of the year. This total is 40% less than
in the equivalent period of 2013
although is only slightly short of the
longer term average of 520kW for the
period.
MADRID
A steady improvement to the Spanish
economy in H1 2014 has begun to
form a foundation for data centre
demand growth in Madrid but as yet
has not proved to be the catalyst.
According to the National Statistics
Institute, the country's GDP grew by
0.4% in the first quarter, the highest
rate in six years, followed by 0.6% in
Q2, making Spain one of the strongest
performers in the Eurozone.
Despite these positive indicators
business confidence has remained
fragile. The latest index results from
the Ministry of Trade in Spain show this
to be in negative territory currently (-6).
Looking ahead latent enterprise
demand can be expected to begin to
filter through to the colocation market
should economic stability be
maintained. Current enterprise IT
strategy is positioned toward
engagement with an outsourced
partner, increasingly involving cloud.
This should benefit colocation
providers moving forward both through
an upturn in direct demand from
enterprises and through growth in
business from cloud service providers.
the amount of available customer
power to 15MW.

Total supply at the end of Q2 had risen
to 134MW of customer power with
25MW currently available. The supply
total represents an annual growth rate
over the past five years of 21% pa,
close to double that of any of major
European market. Both Equinix and
Interxion are scheduled to bring further
capacity on before the year closes.
Interxion will complete the next phase
of AMS 7 in Q3 2014 and the second
phase of Equinix AMS3 is due for
completion in Q4 adding capacity for
1,800 cabinets.
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KEY STATISTICS
EUROPEAN TIER 1
LOCATION
SUPPLY
MW

AVAILABILITY
MW

COLOCATION TAKE-
UP
QUARTERLY
COLOCATION TAKE-
UP
YEAR TO DATE
London Q2 2014
326 75 2.3 8.6
Q2 2013
297 73 4.3 8.3
Frankfurt Q2 2014
152 22 3.8 13.2
Q2 2013
139 26 1.2 5.6
Paris Q2 2014
120 18 1.5 4.0
Q2 2013
112 20 2.5 4.4
Amsterdam Q2 2014
134 25 3.0 11.7
Q2 2013
120 28 1.6 3.6
Madrid Q2 2014
22 1 0.2 0.5
Q2 2013
22 1 0.0 0.8
European Tier 1 Total Q2 2014
754 142 10.8 38.0
Q2 2013
689 148 9.6 22.6
LOCATION QUARTER 2 2014
London Colt has added 1,000 sq m of data halls to its London 3 data centre, located in Welwyn Garden City, bringing the total space available within the facility to
6,500 sq m.
US fibre company Zayo Group has announced it has acquired Geo Networks Ltd, a London-based dark fibre provider. The acquisition will add over 2,100 route
miles to Zayo's European network, and connectivity to 587 on-net buildings
Pulsant completed the latest set of upgrades its Croydon, South London data centre facility. The upgrades are the next phase in an 18 million investment
programme.
Frankfurt Interxion has bought forward its expansion plans on the two phases of its FRA 8 facility, with the two remaining phases expected to provide a total of
approximately 1,800 sq m.
Kroll Ontrack, a global provider of ediscovery and data recovery products and services, has opened its new data centre in Frankfurt.
In Hamburg, Colt has expanded its existing data centre in the city by adding 565 sq m.
Paris US fibre company Zayo Group acquired Neo Telecoms, a Paris-based bandwidth infrastructure company. The acquisition adds 350 metro route miles in Paris
and more than 500 on-net buildings to Zayo's network.
BT has taken space in the recently opened Equinix facility (PA4), expanding their data centre capacity in France
The French datacentre group, CHOREUS Datacenter has started construction of its new Paris area facility which it is claimed will be the first such facility to be
powered by trigeneration gas.
Amsterdam Interxion has bought forward its expansion plans its AMS 7 facility by starting work on two further phases totalling approximately 2,600 sq m of equipped
space and approximately 6 MW of power.
Perigon Networks has added a new data centre in Amsterdam.
The city of Amsterdam chose KPN to provide colocation services for its infrastructure in its Almere data centre
Madrid Telefonica's Alcal data centre located just outside Madrid and being built in phases - has become Europe's largest data centre and has obtained TIER IV
Gold certification.
EUROPEAN MARKET ACTIVITY
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MARKET FOCUS
COLOCATION SUPPLY WATCH
London
Paris
Frankfurt
Amsterdam
Madrid
Available (MW) Contracted (MW)
Key
0
50
100
150
2009 2010 2011 2012 2013 2014
Q2
Contracted Available
0
50
100
150
200
2009 2010 2011 2012 2013 2014
Q2
Contracted Available
0
50
100
150
200
250
300
350
2009 2010 2011 2012 2013 2014
Q2
Contracted Available
0
20
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014
Q2
Contracted Available
0
5
10
15
20
25
2009 2010 2011 2012 2013 2014
Q2
Contracted Available
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DEFINITIONS
COLOCATION
TIER 1 MARKETS
Amsterdam, Frankfurt, London, Madrid, Paris

SUPPLY
Retail colocation supply comprises of fitted data centre space only; unbuilt shell phases of the data centre are excluded.

Wholesale colocation supply includes both fitted and shell data centre space. Typically wholesale operators sell shell
space which is built out to suit customers.

AVAILABILITY
Retail availability of space is based on fully fitted space vacant and available to sell

Wholesale availability is based on all vacant space.

VACANCY RATE
The vacancy rate is a product of availability/total supply.

COLOCATION TAKE-UP
This comprises data centre space committed to at retail and wholesale colocation facilities in the relevant quarter.

TOTAL MARKET TAKE-UP
This comprises of colocation take-up (retail and wholesale), significant secured data centre space classified as Self-build or
Threat stock (either surplus carrier or corporate facilities).

Self-build: typically land for development or modern empty warehouse which is acquired for conversion to a data centre
for use by an end-user which will use the space for their own purposes e.g. a large bank.

Threat stock: surplus carrier/webhosting space offered to the market as competing stock on a carrier neutral basis

SPACE TYPE
Shell: shell & core space is the base real estate of a data centre, a wind and watertight structure with exposed floor and
ceiling slabs and exposed finishes to the walls. The landlord would obtain permissions for data-centre use and make
provisions for tenants to install their own chillers and back-up power generating equipment. In addition, an incoming
diverse raw HV (high voltage) power supply would usually be provided.

Fitted: fully-fitted space is ready for tenant IT equipment to be installed almost immediately or subject only to minor works
being carried out to account for bespoke equipment and layouts.
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CONTACTS
Andrew Jay
Head of Data Centre Solutions
Global Corporate Services
CBRE
10 Paternoster Row
London
EC4M 7HP
t: +44 (0)20 7182 3461
e: andrew.jay@cbre.com
Martin Carroll
Senior Director
Global Corporate Services
CBRE
10 Paternoster Row
London
EC4M 7HP
t: + 44 (0)20 7182 3529
e: martin.carroll@cbre.com
Darren Mansfield
Analyst
Global Corporate Services
CBRE
10 Paternoster Row
London
EC4M 7HP
t: + 44 (0)20 7182 3019
e: darren.mansfield@cbre.com
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to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or
representation about them. It is your responsibility to confirm independently their accuracy and completeness. This
information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved
and cannot be reproduced without prior written permission of CBRE.
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CBRE DATA CENTRE SOLUTIONS

CBRE formed a Data Centre team in 1994 to address the specialised technical real estate needs of high-tech firms such
as telecommunications companies, data centre operators and corporates.

Core technical real estate services provided by the CBRE Data Centre Solutions team include:
Investment
Disposal one-off assignments, multi-site marketing campaigns
Acquisition one-off assignments, worldwide network rollouts
Consultancy consolidation strategies, Mergers & Acquisitions
Asset Valuation Bank, Corporate
Project Management, Development Monitoring, Due Diligence, Building and M&E surveys
Research market reports, statistics, take-up forecasting

CBRE has monitored worldwide Colocation supply statistics since 1999. This bulletin relates only to the European
Colocation Tier 1 markets. Additional market statistics are available on request.
www.cbre.com
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