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Data centre rankings heat up as Covid increases demand

[Photo: Taylor Vick/Unsplash]

European cities London and Amsterdam are among the global “top 10” data centre markets  while Athens, Stockholm, Moscow and Vienna are among 10 “markets to watch” world-wide.

The listings have been compiled by Cushman & Wakefield which has published its Data Centre Global Market Comparison to highlight the markets demonstrating the characteristics data centre investors, owners, operators and occupiers value, and flag up those markets that are rising through the ranks.

C&W said that during 2020, data centres were recognised for their crucial presence in maintaining communication and knowledge through the covid health crisis. “The consequent rise in requirements has accelerated and deepened demand for data centre capacity across the world,” the firm said in a statement.

“While demand for data centres has been increasing for a number of years, the COVID-19 pandemic and the resulting reliance upon cloud services has catapulted data centre demand, among occupiers and investors alike, to new levels and has resulted in a highly competitive marketplace, particularly in established markets,” C&W data centre advisory group leader and executive managing director Dave Fanning said.

“With the shift to cloud services likely to continue and further optimise, increasing land values, limited power availability, data centre construction moratoriums and fibre connection latency demands in some established markets are also unlocking activity in emerging locations.”

Northern Virginia is top of the global data centre index because of its large market size, robust fibre, attractive incentives, low cost power, and because it has the largest development pipeline.

Chicago is in second place with similar attractions while Sydney lies third after a year of major development announcements and the transformation of much of Australia’s government IT infrastructure, which is ongoing, C&W pointed out.

Top 10 Global Markets for Data Centres

  1.             Northern Virginia
  2.             Chicago
  3.             Sydney
  4.             Silicon Valley
  5.             Singapore
  6.             Dallas
  7.             London
  8.             Seattle
  9.             New York / New Jersey
  10.           Amsterdam

Top 10 Data Centre Markets to Watch

  1.             Nairobi
  2.             Cape Town
  3.             Athens
  4.             Santiago
  5.             Kuala Lumpur
  6.             Stockholm
  7.             Moscow
  8.             Abu Dhabi
  9.             Chennai
  10.           Vienna

“Secondary markets continue to grow in importance, with some areas in Europe and Asia of particular interest as providers move to bring capacity closer to users,” said director of research in the data centre advisory group Kevin Imboden.

“These secondary locales often provide greater margins for data centre operators, with some set to grow to primary market status in the future,” he added.