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RSS feedsThe credit crunch has seen demand for datacentre space in London dwindle rapidly, but IT managers hoping to seize the opportunity to secure prime locations on the cheap look set for disappointment.
Property service group CB Richard Ellis (CBRE) reported that the take-up of datacentre space in London during the first quarter of 2008 was the lowest since it began measuring demand in 2004.
Basic economics suggests that with falling demand, customers would routinely
expect their bargaining power to increase. But Andrew Jay, head of technology
practice at CBRE warns that the credit crunch has also impacted datacentre
supply.
A year ago, when demand for datacentre facilities in London was at record
levels, a number of property firms were covetously eyeing up the possibility of
moving in to the datacentre market, he said.
"Now they can't raise the debt [needed to finance building the facilities]," Jay told IT Week. "So while demand has dropped, so has supply."
Jay added that while demand for datacentre facilities was at record levels during 2007, it would likely remain weaker for rest of 2008.
See also:
Datacentre equipment maker first to publish energy efficiency standards for all products 02 Jun 2008
IT will be bigger polluter than airlines by 2020 01 May 2008
Green spending is set to top $2 billion by 2014 says Forrester 07 Mar 2008
Better management tools are the key to getting the best from legacy datacentres 08 Jan 2008All IT Management
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