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As one of the most established data centre markets in Europe, London has played a pivotal role in driving digital transformation and innovation. The capital city has witnessed a doubling of supply from 1,000MW in 2018 to an impressive 2,000MW in 2022. Major cloud providers including Microsoft Azure, Google Cloud, and Amazon Web Services (AWS) have been instrumental in driving demand, with over 180MW of take-up recorded in 2022 alone.
Other findings from the report from DC Byte’s London Market Spotlight:
Live IT power accounted for 56% of total supply in 2021, but the pipeline for under construction and committed power has grown, reflecting anticipated future demand.
Slough and West London has the largest IT capacity and number of data centers, driven by public cloud deployment.
Demand for data centers is expanding to areas outside established clusters, such as the West of London, East London, and Manchester.
While London's data centre market continues to flourish, the London Market Spotlight report raises questions about its future capacity to support the growing demand. Concerns regarding the availability of power and suitable sites for expansion necessitate a strategic approach to ensure the market's ability to accommodate future growth and meet the evolving needs of cloud providers, enterprises, and digital businesses.
"This report offers invaluable insights into the city's very vibrant data center market," said William King, Managing Director for EMEA region at DC Byte. "London's growth as a data centre hub has been exceptional, and the Spotlight serves as a valuable resource for industry professionals navigating the evolving landscape. It also highlights the importance of strategic diversification to meet the increasing demand for the next generation of data centre services."
DC Byte’s London Market Spotlight encourages the consideration of markets such as Milan and Madrid, which offer exciting opportunities for data centre expansion and investment. Offering untapped potential, lower competition, more favorable pricing, and ample availability of power and suitable sites for future development, up-and-coming markets can be an attractive alternative for those looking to expand data centre operations and investment beyond the confines of London's growing market.
