The Race for Space: Regional UK Data Centres outstrip London/M25

Race for Space - Regional UK Data Centres outstrip London/M25

By NGD 02 | February | 2017

New report highlights how customers are paying a high price for London and Slough locations... NGD’s Simon Bearne takes a look.

At the end of 2016 over 7 million sq ft of raised floor space was built up by UK third party data centres with the major growth coming from outside the London/M25. According to Tarifff Consulting’s findings in their “UK Data Centre Trends” based on 120 UK providers owning 250 facilities, 2026 will be remembered as the year data centre clusters started to gain traction outside of London.

It also emphasises the gaping price differential between third party rack space within the London/M25 area versus the regions, something which NGD customers have known about for some while!

In fact, NGD was singled out in the report when it came to highlighting the growing trend “at the end of 2016 and continuing into 2017” of cloud providers choosing to take space at third party facilities. During 2016 NGD built out a number of large custom halls for housing racks in support of cloud providers including several for one of the world’s largest computer software companies.

With 22 large data halls now sold NGD has filled almost 40% of the available capacity of the 750,000 square feet south Wales facility. Continuing strong demand from the UK and overseas including several further halls due for delivery in early 2017 means expansion onto the first floor is now imminent.

“This report makes interesting reading and re-enforces what we have known for a long time. NGD has always offered highly competitive rates compared to London/25 data centres facilities while at the same time delivering world class facilities with large amounts of space, power and connectivity,” said Simon Taylor, Chairman, NGD.

Significant growth in cloud - increasingly hybrid - and high performance computing (HPC) environments is driving many organisations to switch from using their own data centres to the comparatively few very large modern colocation facilities like NGD. We have the economies of scale and power available to meet their high density needs much more cost-effectively than they can achieve in-house or by using the majority of UK colo operations, especially those in the London area.

Find out more from Tariff Consulting’s report here.

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