Data centre downtime can potentially cost millions in lost revenue and compensation and can even threaten the livelihood of a business by causing damage to its reputation. According to the latest Data Centre Risk Index – Cushman & Wakefield, US ranks 1st in terms of risks likely to affect successful data centre operations, with UK on 2nd whereas China & India at 25th & 29th position respectively.
Macro level risks – physical, economic and social, can cause a threat to service continuity of Data Centres. Commercial considerations are typically a key driver while choosing a particular territory, but one need to understand not all countries have a overall better environment for data centres.
An ideal Data Center location is one that provides a company with protection from hazards, easy accessibility and features that accommodate future growth and change.
Need for data centers in various geographies
1. EMEA (Europe-Middle East-Africa)
In these regions, despite current economic environment, data centre demand has been steady. The continued development of IT products and creation of data will lead to the growth in demand for data centres.
The mature markets will continue to dominate & the markets in Northern and Eastern Europe will secure opportunities from a low base. Power and infrastructure policies will have a direct effect on future data centre in the region.
2. APAC (Asia Pacific)
Despite being a challenging market, these region are expected to see growth and investment opportunities, both in the mature and the emerging markets. The region is expected to continue expanding their data centre demand, driven by the economic dynamism and the along-with IT systems and cloud.
Hong Kong and Singapore remain as the main international hubs with China being a big focus for operators and users. Traditional hubs including Singapore, Hong Kong, Tokyo and Sydney are expected to remain the favoured locations & total data centre capacity in these countries is expected to be increased by 50% in the next 5 years.
Penetration of ICT services and infrastructure is significantly higher in northern Asia; however, southern Asian markets have witnessed a steady demand for data centre space.
But operators face challenges in these regions due to government restrictions and also difficulty in finding operating partners.
Data centre real estate will remain positive for the next couple of years in the region. The North American will continue to see development and expansion of operations but secondary markets will provide competition. South America will experience solid growth due to rise in IT adoption rates and the investment in communications infrastructure.
In Canada, Data centre real estate market is expected to accelerate with investment and development attracted from the US and Europe.
To get more details about Data centres and their market, download the full report here
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