CBRE: Low Vacancy Rates in FLAPD Data Centre Markets
According to research from CBRE, the vacancy rate dropped in Europe’s top five data centre markets. For the first time ever in Q2 2024, the colocation data centre vacancy rate fell below 10% in Frankfurt, London, Amsterdam, Paris and Dublin (known as the FLAPD market).
Results showed that the vacancy rate of FLAPD sits at 9.8%, but it is expected to fall to 7.9% before 2025. This will be the fifth consecutive year the vacancy rate has fallen.
CBRE navigates the challenges of data centre development in Europe
CBRE Group is a Fortune 500 and S&P 500 company based in Dallas. It is the world’s largest commercial real estate services and investment firm, serving clients in over 100 countries. CBRE serves a wide range of clients with a range of services, including property management, investment management, property sales and development services. CBRE research explores the data centre opportunities for enterprises in the wave of AI and machine learning technology development.
We featured CBRE in Top 10: Data Centre Consultants.
Calling data centres one of the industry’s most dynamic asset types, CBRE are experts in solving complex challenges for its clients. With teams all over the world, CBRE pairs market expertise with local intelligence to deliver comprehensive solutions to keep its clientele ahead of relevant trends and technologies.
CBRE’s research also showed that hyperscalers' interest in colocation data centres was staying strong, led by the need to provide digital services, in addition to keeping sought after supply away from their competitors.
Yet, providers are finding it a challenge to accommodate, due to a lack of available power and appropriate land in the FLAPD markets in Europe. In cities such as Frankfurt and Amsterdam, data centre construction is difficult as regulation features prominently in development plans.
Due to this, take-up regularly exceeds the new supply delivered in most large European metro markets.
- 646MW of new supply to be delivered this year
- For take-up to reach 693MW across the 15 markets tracked by the firm.
“Data centre capacity is an increasingly precious commodity given the considerable demand for space and competition for it,” said Kevin Restivo, Head of European Data Centre Research. “Providers that can secure the necessary resource and build data centres are able to command higher prices for the space.”
Uses of AI in data centres
According to research by digital infrastructure company Equinix, 62% of global IT decision-makers view a shortage of personnel with IT skills as one of the main threats to their business.
New AI technologies are among the most widely-cited solutions to the current talent crisis. Pioneering talent specialists across the world are utilising AI to help clients achieve a more efficient, supportive and intuitive approach to both onboarding and talent retention.
“In terms of supporting talent, AI can be very effective as a tool supporting augmented reality training scenarios, providing efficient real-time operational analytics and for attracting talent by demonstrating that a business is leveraging new and emerging technologies to provide employees with more interesting and future proof roles,” Mick Lane, the Global Technology Solutions Manager at CBRE.
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