22% increase in UK data centre capacity will keep prices steady until 2019

Data centre pricing in the UK will remain almost static for the next five years even though capacity inside facilities continues to grow at a steady rate.

A report commissioned by Tariff Consultancy Limited [TCL], the European data centre market monitor, found that the cost of using facilities is set to rise by just three per cent between now and 2019 as capacity increases by some 22 per cent across the same period.

The growth will be at regional data centres outside of London that includes areas such as Slough, Birmingham, Manchester and Leeds and they will be developed “with clusters of service providers developing their own digital ecosystem,” according to TCL. Data centres outside of London already account for some 56 per cent of “all raised floor space” in the UK and this is set to continue.

Data centres are able to keep prices at low levels due to the introduction of what TCL dubs “premium data centre facilities,” that provide standard power of up to 20kW per rack.

TCL’s projections haven’t struck a chord with all observers though and some believe the price of UK data centres will fall over the coming years.

“I do not think data centre pricing is going to remain the same – I think it is going down,” Steve Groom, CEO of Vissensa, told Cloud Pro. “The UK has the most expensive data centre pricing and there is already a glut of data centres. Because of that and because of the actions of larger service providers, pricing cannot remain the same as it is now.”

The UK has the most data centre capacity of any country in Europe and by the close of 2014 there is set to be 650,000sq metres of floor space in the UK, according to TCL’s figures. It is also has the highest prices of any country on the continent and they are “significantly higher” than other large markets such as Germany, France and the Netherlands.