Global data centre spend to increase by 6% in 2021
According to its latest figures, the forecast projections show that despite overall spending having dipped by over 10% in 2020 due to restricted cash flow, investment in data centres will grow exponentially for the next four years.
Experts believe this is due to organisations swapping over to digital platforms to ensure businesses remain functional amidst the global pandemic. Lockdowns in response to COVID-19 have also hindered the planned construction of an estimated 60% of new facilities in 2020. So, while figures show a revenue decline in the industry of 10.3% in 2020, expenditure is predicted to rebound dramatically in 2021.
Gartner’s findings suggest infrastructure general managers should prioritise their core existing and new customers. They should also train company sales teams to work with CFOs and procurement officers to optimise cost initiatives, and consolidate and renegotiate their IT contracts.
Gartner also recommends organisations create a new industry manual that helps tech providers appreciate the pandemic’s effect on multiple industries. They can then advise on new short to mid-term strategies for providers of those sectors.
explained in a press release: “The priority for most companies in 2020 is keeping the lights on, so data centre growth is generally being pushed back until the market enters the recovery period. Gartner expects larger enterprise data centres sites to hit pause temporarily and then resume expansion plans later this year or early next. However, hyperscalers will continue with their global expansion plans due to continued investments in public cloud.”
He added: “Much of the reduced demand in 2020 is expected to return in 2021 when staff can physically be onsite. For now, all data centre infrastructure segments will be subject to cost containment measures and enterprise buyers are expected to extend life cycles of installed equipment.”
GTR and SEGRO agree first UK data centre facility
SEGRO, a property investment and development company, has announced it has come to an agreement with the European data centre platform, Global Technical Realty (GTR) to construct its first UK-based data centre. SEGRO claims that the facility, which will span a total area of 400,711 sq ft, will be located in Slough and is to become “the largest data centre campus in the UK’s premier data centre and communications hub”.
What will SEGRO’s data centre facility be used for?
Supported by the global investment firm KKR, Global Technical Realty says it will be using the facility’s space on a 25-year term to operate bespoke data centres for high-growth global technology companies. The new facility aims to support the growing demand for third-party data centre provision amid ever-increasing growth in data usage and cloud services adoption.
Franek Sodzawiczny, CEO & Founder of GTR, said: “We are excited to be back in the UK alongside our partner KKR and look forward to working closely with SEGRO to deliver this state-of-the-art data centre campus. The data centre space is a fast-moving one. GTR was established to support its customers in providing a data centre solution wherever in the world there is a demand for it. We are delighted that the UK will become home to our flagship concept”.
James Craddock, Managing Director, Thames Valley at SEGRO, said: “We’re pleased to welcome GTR as the latest data centre operator to our thriving estate and our team of experts look forward to developing a stunning new facility for them and their customers. “Homeworking, data streaming, e-commerce and businesses’ reliance on cloud services have all grown during the pandemic, meaning demand for data centres is unabated.
“Slough Trading Estate is home to Europe’s largest data centre cluster and data centres are increasingly regarded as part of our key national infrastructure given the critical role they play in our daily lives”, he added.
The facility is expected to be delivered in two phases with operations beginning by Q4 of next year. The first phase plans to provide 132,575 sq ft of space phase two will create 268,136 sq ft of space. “Vacant possession of the site delivered to the customer by early 2022”, SEGRO said.
The project is also expected to create around 200 jobs during its construction, and a further 80 permanent roles once completed.