Data centres a priority for corporates

Research Shows Data Centres Remain a Corporate Priority, With 80% of Firms Planning Expansion

March 11, 2010

Research Shows Data Centres Remain a Corporate Priority, With 80% of Firms Planning Expansion

Research commissioned by Digital Realty Trust shows that in 2010, companies will increase their data centre floor space and expand into new locations as the European economy stabilises

Digital Realty Trust, Inc. (NYSE: DLR), the world’s largest wholesale data centre provider, announced the results of a new study which shows that the majority of European companies are placing data centre expansion firmly on the corporate agenda in 2010.

The research addressed large enterprises from France, Germany, Spain, the UK and Ireland, and reveals that data centres have remained a priority for organisations despite the challenging economy.

Key findings of the new study include:

* Four out of five companies (80 percent) surveyed are planning data centre expansions within the next year.

* Almost two thirds (62 percent) of companies have built a new data centre in the past 24 months.

* French companies have shown the broadest commitment to expansion, with nine out of ten (90 percent) planning to grow their data centres in 2010. In terms of immediate and definite expansion, German and UK/Irish companies showed the greatest commitment, with definite plans for 2010 growth reported by 30 percent and 29 percent of respondents, respectively.

* The largest enterprises (those with annual revenues of euro 20B+) showed the greatest commitment to expansion plans. 43 percent of companies in this category will definitely grow their data centres in 2010.

“After a turbulent year for many European businesses, a remarkably high proportion of them are planning data centre expansion projects in 2010. Even with the challenge posed by limited capital expenditure budgets, companies are treating data centre expansion as a necessity,” said Bernard Geoghegan, Senior Vice President at Digital Realty Trust who oversees International Operations.

“Our customers are reporting a pressing need to enlarge their data centres, which are recognised as business-critical assets which support plans for both recovery and future growth.”

Other findings of note in the new study include:

* Four in five (79 percent) respondents who plan to expand in 2010 say they will use a partner to implement their expansion plans.

* Nearly half (49 percent) of European companies plan to expand their data centres in two or more locations, and 43 percent are looking to establish a data centre in a new location.

* The most popular cities in which to site a new data centre are London (29 percent), Paris (21 percent) and Frankfurt (19 percent), consistent with the results of last year’s survey.

* On average, companies are seeking 1,400 square metres (15,100 square feet) of raised floor for their expanded data centres. Respondents from UK/Ireland are seeking the largest data centres, with ambitions for 1,580 square metres (17,000 square feet), while space requirements are lower in France (1,230 square metres (13,200 square feet)) and Spain (1,240 square metres (13,400 square feet)).

“As we see in the 2010 survey data, London and Paris in particular continue to see high demand for data centres. Each hosts European headquarters for multinational corporations, both are well positioned to address Western European markets, and consequently they are hubs for broader economic investment. It is also clear that companies are seeking to expand in multiple locations and establish facilities in new regions, suggesting that the European data centre market will see new growth areas during the coming years,” Geoghegan added.