Published on 16 July 2009

An Overview of Q1 2009 European Data Centres Report by CBRE

The world is in the middle of an economic turndown and since globalization has ensured that developments in any major sector effect other regions and sectors around the world, it is not a surprise that even the previously blooming Data Center industry has taken a hit from this storm. And who else would be better equipped to comment on this than the world renowned real estate analysts CB Richard Ellis. This might seem a bit strange to a newbie since they might not be able to fully comprehend the relationship between data center performance and real estate but then you just need to read this report and find out for yourself once and for all.

The full report is quite lengthy and technically complicated as one would expect from a hi-end analyst and my job here is to simplify the same for you by discussing the main points. This report focuses on Europe and the major five cities which have been taken as the benchmark include those of London, Paris, Madrid, Frankfurt and Amsterdam.

The very first thing which is worth noting is nearly the five times decline in total take up in the Q1 2009 vis-à-vis Q4 2008 and the major contributor to this pull down is the decline in the Shell market demand; the take up being concentrated on the CNH market.

Of course though the prediction for the remaining quarters of 2009 may not be very enthusiastic, still the silver lining in the cloud is that the fundamental factors driving growth in computing power are still going strong. This simply means that although the current scenario seems a bit bleak, the outlook at least for the medium terms could be expected to be healthy. This also would depend on the overall global economic scenario and once it starts to improve, it would lead to escalation of take up demand.

To read further, please visit the Data Center Journal website:
http://datacenterjournal.com/content/view/3009/41/