UK data centers to face competition

IT consultancy firm BroadGroup Consulting announced on Monday that as power costs continue to rise and UK data centres are left worrying about energy reduction processes and technologies, as well as legislative compliance, they will be facing more competition from emerging players outside of the UK and Central Europe.

BroadGroup recently completed a study that shows that greater competition for data center outsourcing will emerge in the coming years from the southern Mediterranean and North Africa, locations in Eastern Europe, the Baltics and the Nordic region.

In countries on the perimeter, BroadGroup has found that development agencies were at different stages of creating incentive plans geared specifically towards the sector. Some have already identified zones for high-tech development, while others are creating sustainable energy supply packages.

These locations could present future opportunities for data centre operators in Europe, but there are some issues that still need to be resolved with those areas, like fiber deployment, sustainable power supply and skilled human resource.

"What we have to recognize is that energy and carbon emissions will dominate the agenda for the foreseeable future," says Steve Wallage, managing director at BroadGroup Consulting. "At the same time, investors are looking at where cost advantages can be achieved across markets.

As virtualisation takes hold, it is also obvious to forward looking companies that geographic location can add to their competitive differentiation and reduce costs. Where managed carefully, some of the emerging markets could be suitable locations to fulfill these goals."

BroadGroup will be discussing more of this at the 4th Data Centres Europe event from April 10 to 11 in London, England.

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