Intelligent Data Centres Issue 3 - Page 40

EXPERT OPINION Re-thinking data centre location decisions Research has found the UK to be the highest priced country in Europe for data centre facilities. Simon Bearne, Commercial Director at UK data centre operator NGD, delves beyond the headlines of a pricing report and outlines why organisations should consider looking outside of London to get better value. 40 Issue 03’s most recent pricing trends surveys, undertaken at the end of 2018, continued to find the UK to be the highest priced overall in Europe. I say ‘continued’ as their previous mid- year report had placed the UK out of 15 European countries, along with Ireland and Switzerland, at the top end of the pricing scale – with the highest average pricing and monthly rack space rates of €1,000 or more. D Fair enough. But here’s the thing. Taking an ‘averaging out’ approach with statistics can be misleading. A somewhat broad- brush country to country average price comparison overlooks the huge variations in pricing that exists in a major market such as the UK. After all, the London and inner M25 area is the traditional heartland for UK data centres but also the most expensive, so a national averaging across the board will skew the reality quite considerably. It was therefore pleasing to see their UK specific survey highlighting a more regionalised picture of the market. On the one hand London and Slough, it says, are the most expensive; perhaps not so surprising bearing in mind the high cost of real estate. At the same time, it was very interesting to note the accelerating growth of a few non-London UK regions such as Manchester and Cardiff. The latter being highlighted both as the lowest priced and one of the fastest growing UK data centre clusters. There is data centre life outside of London Docklands and the M25 after all.