The data centre industry has finally been hit by the recession, with overall take up of space in European data centres dropping significantly due to the decrease in capital-intensive shell (base, unfitted data centre) deals.
“In 2008, the average quarterly take-up in the shell market was 12,022 sq m; this quarter there was none,” says Andrew Jay, senior director of CB Richard Ellis (CBRE), which produces the quarterly European Data Centres report.
The overall quarterly take-up of space was 11,020 sq m, the lowest first quarter recorded since CBRE began tracking the statistics in 1999.
By contrast, take-up in the fourth quarter of 2008 was 54,300 sq m.
“The reasons are twofold,” explains Jay. “The downturn in the economy has had a huge impact on these highly capital-intensive projects; and secondly, the majority of investment banks have deployed their footprints over the last two years, resulting in reduced demand for 2009.”
The report also highlighted a renewed focus on power, with cost-conscious occupiers driving for greater efficiencies.
“Data centres are one of the few sectors where greener is cheaper,” it said.