NGD: Racing Toward the End of Another Record Year

Racing towards the end of another record year

By Steve Davis 06 | October | 2016

NGD Chairman and co-founder Simon Taylor pauses for breath to provide an update on why 2016 is proving to be a very special year 

This year seems to be flying by faster than ever and with summer now officially over it will be Christmas before we know it. Even now mince pies are on sale in the supermarkets and Christmas trees are sprouting in hotel lobbies!

There’s certainly been plenty going on at NGD to keeps us busy including our £100M funding agreement with French-owned Infravia Capital Partners for ensuring we can accelerate our growth in the years to come. And as we speak the build out of two further large 2MW data halls is underway for delivery before the end of the year. These are for our major global software customer who only took possession of their first hall at the end of last year.

We have now sold 21 halls - almost all of the ground floor of our 750,000 sq ft building – which is the equivalent to about 6000 racks. New business deals are in the pipeline for delivery in Q1 and strong forward demand means planning is now at the final stages for opening NGD’s second floor.

In fact the year so far is already 40 percent up on last year in terms of revenues and we are well on the way to achieving record sales by 31 December. This will be our eighth successive year of record growth, and unusually for many data centre businesses, we have always been profitable.

As we race towards the end of the year and drive the business forward into 2017, NGD is now ideally positioned and well-funded to take full advantage of all manner of demand, large and small. Our partnership with Infravia is perfectly balanced in that that it allows them to handle the financial aspects while NGD’s management can focus totally on running operations and maximising customer engagement.

Turning point

2016 is also notable for the unprecedented demand in the market from large enterprises and cloud providers for outsource data centre space, power and connectivity. This is typically for supporting Cloud - increasingly Hybrid - and HPC environments which is at the heart of why they are looking to switch from their own data centres to the comparatively few very large colocation facilities like ours. As recent industry research has shown only these have the economies of scale to meet the high density needs of large enterprise organisations much more cost-effectively than they can do in-house or via smaller colo operations.

The market has therefore reached a significant turning point and off the back of this NGD is experiencing increasing interest directly from large corporations and cloud service providers headquartered overseas - as well as here. This ideally complements the large contracts we already win from multinational Systems Integrators such as BT, CGI, IBM, Wipro and Infosys - the core of our business ecosystem – and the smaller deals delivered by our growing Channel Partner community.

All of this is good news for NGD as more frequent and larger data centre outsourcing opportunities are becoming increasingly available to facilities with the right credentials. At the same time, factors such as international data transfer and the future implications of the UK’s ‘Brexit’ are putting data centre location, data sovereignty and replication into the spotlight. This could potentially see much more demand for onshoring of data and further emphasises the critical role played by highly secure data centres, especially those offering vast scale and the power to match.