UK TCL Data Centre Pricing Market Research Report To 2014: Radiant Insights

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Introduction – The Data Centre Pricing UK – 2014 to 2019 report

The TCL Data Centre Pricing UK – 2014 to 2019 report provides a unique overview of Data Centre pricing in the UK market – which is currently the largest in Europe by raised floor space and has amongst the highest average rack space pricing per month of all of the European countries of over Euro 1,031 per month per standard retail rack of space.

The UK continues to see a build out of new Data Centre space. Traditionally Data Centre space has been focussed around the London area, with facilities originally began in the Docklands, and to the West of London.

But more recently major Data Centre facilities have been constructed outside of London and the South East region with large campus-style Data Centres being established in areas outside London such as Wiltshire, South Wales and North Cambridgeshire.

These new Data Centre offer each offer potential raised floor space of from 30,000 square metres up to 60,000 square metres (or up to potentially 750,000 square metres in the case of NGD in South Wales) when fully built out – and now aim to attract a wide range of clients, not just the wholesale user. Space is typically being released through the sale of individual data halls, with a gradual build out programme in line with customer demand.

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The use of multiple data halls allows the Data Centre provider additional flexibility. Each hall can be customised for the particular power or redundancy requirements of the client or else can be used to provide general Data Centre space for individual enterprise users.

Data Centre providers that have specialised in the supply of wholesale space are targeting the medium or large retail segment user through the packaging of power and space as cage or suite space. Space and power is being provided at smaller units bringing the wholesale provider into competition with other Data Centre providers.

The introduction of new raised floor space by the large Data Centre provider from outside London will provide more user choice but at a lower average price point. The new campus space does not have the same degree of network connectivity as a traditional London based facility but it will provide more options for customers where location is not so important.

The new space will also put a floor on average market pricing. However it is likely that the existing London-based Data Centre will continue to benefit from high utilisation levels due to the ability to connect to a wider range of networks and clients that will be attractive to financial traders, gaming, content delivery and digital media providers.  

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The introduction of new UK Data Centre space is being driven by a relatively small number of new Data Centre providers with very large facilities outside the London area including providers such as NGD, Camro and Ark Continuity alone accounting for raised floor space – when fully built out – of up to 130,000 square metres. More UK Data Centre space is also being added by Equinix, SDC Infinity and DRT.

Research Methodology

The updated TCL UK Data Centre Pricing – 2014 to 2019 report was written from the period from the end of November 2014 to the middle of December 2014. The report uses both primary and secondary sources of information. It updates the original UK Data Centre Pricing report first published in 2012. All pricing and forecasts have been extensively revised. 

The report is based on a TCL survey and analysis of 59 Data Centre providers in the UK – which have some 151 Data Centre facilities across the country.

It draws on information from previous TCL reports (including the TCL Premium Data Centre report) and from the TCL Data Centre Price Tracker subscription service. The pricing shown in the report is in Euro – and has been converted from GBPs at the rate of 0.83 Euro to 1 GBP. All pricing is shown exclusive of VAT and taxes. 

All UK Data Centre raised floor space in this report is converted into square metres from square feet at the following rate:

10 square feet = 0.929 square metres

In the report for consistency all power per rack is shown in kilowatts (kW) per rack and in kilowatts per hour (kW per hour). Total power into the Data Centre from the national grid is shown in MegaWatts (MW) or MVA. 

The basis of the report is a unique model of the UK Data Centre market developed by TCL – which includes the key metrics of power, capacity and pricing by facility and by Data Centre provider. The information for the model is obtained from each provider and is then integrated into the TCL database as part of a “bottom up” process. 

The report also uses telephone and face to face interviews along with a TCL questionnaire which is used to provide information on Data Centre capacity and demand factors for the forecast.

The TCL report also uses information which comes from a range of sources including independent experts, Data Centre company presentations, telecoms companies, IT companies and real estate companies.   

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