The European data center market, which represents nearly 20% of the global market1, is experiencing strong growth. Specifically, in the so-called FLAP markets – Frankfurt, London, Amsterdam and Paris – these data center hubs had the largest amount of take-up in 20182 and development continues at a fast pace in 2019. e-shelter has a presence in three of these four locations, with its strong base in Frankfurt, a newly opened campus in Amsterdam, and operations in London, including one of the largest data centers in the UK currently under construction.
London is the leading European data center market, in terms of overall size3, and in 2018, the city achieved the largest volume of take-up of any individual European location4. London is a global connectivity hub and home to the London Internet Exchange (LINX). At the end of 2018, vacancy rates in London dropped to the lowest year-end rate in over 10 years5, indicating strong demand for capacity. But the amount of large-scale deployment options is being minimized due to the limited number of suitable sites with accessible power. As a result, now is a prime time to develop in this market, and e-shelter should be in a strong position when London 1 comes online in 2020.
In Germany, Frankfurt is the leading data center market, with the prominent features of a city rich in fiber and home to DE-CIX, one of the world’s leading Internet Exchange platforms. In 2018, activity in Frankfurt increased, as the city had its strongest year for take-up6, despite a significant amount of new supply being introduced7. This growth and continued build-out solidified Frankfurt’s position as the second largest data center market in Europe and 2019 is likely to be just as strong. Frankfurt is already off to a good start, with a noticeable number of large-scale deals having been transacted. e-shelter continues to be the market leader in Frankfurt, with three existing campuses, including Frankfurt 1, which is the largest individual data center site for colocation in Europe, as well as the addition of Frankfurt 4, which will provide a total of nearly 80MW IT load when fully completed.
A view of the Frankfurt 1 data center campus.
Amsterdam is the third largest data center market in Europe. Amsterdam recorded its second strongest year for take-up in 2018, just behind its record performance in 20168. Amsterdam is one of Europe’s best-connected cities due to the leading Internet Exchange, AMS-IX, and the existence of abundant transatlantic fiber optic connections. Operators are still expanding in Amsterdam and are looking at locations all around the city. However, those operators who have secured space and power in the Schiphol area, which includes e-shelter’s newly opened Amsterdam 1, are in a fortuitous position as Schiphol is an ideal data center hub due to its central location and excellent connectivity links.
A view of the Amsterdam 1 data center campus.
The European data center market continues to experience growth in 2019. e-shelter will continue to advance, with its newest facility, Frankfurt 4 (Phase One), set to open on June 27. Chief Strategy Officer, John Eland, speaking about e-shelter’s European expansion, summarizes that “we are seeing strong customer demand for services across Europe, which is driving current expansion outside of our incumbent markets like Frankfurt, where we still continue to invest to maintain our market leading position. We have now successfully expanded into the Netherlands, and our Amsterdam 1 facility in Schiphol was pre-let during construction. We are also investing into the UK, with our London 1 facility construction already well under way. The new campus in Dagenham, East London, will complement the existing five NTT Com owned DCs in Slough and Hemel Hempstead operating under the Gyron brand, which is currently being integrated with e-shelter.” In terms of future growth opportunities, Eland reveals that the “immediate growth plans include a new development in Madrid and we are currently exploring expansion opportunities in Africa, along with Paris, which will give us full FLAP market coverage.”
 451 Research, December 2018
 Take-up across FLAP markets in 2018 reached 194MW; CBRE, March 2019
 Total supply (MW) of London is 559MW; CBRE, March 2019
 London reached 77MW of take-up in 2018; CBRE, March 2019
 Vacancy rates dropped to 16% in London at Q4 2018; CBRE, March 2019
 Frankfurt reached 49MW of take-up in 2018; CBRE, March 2019
 36MW of new supply recorded in 2018 for Frankfurt; CBRE, March 2019
 Amsterdam recorded 42MW of take-up in 2018; CBRE, March 2019