USD230mn Data Centre Investment Reinforces Bullish UK View
BMI View : Our bullish assessment of the UK as a leading European market for data centres and related services is reinforced with the news that Telehouse International has committed GBP135mn (USD230mn) to the construction of a new carrier-neutral facility in London's Docklands. We expect both the UK digital economy and the wider European carrier market to benefit from this investment.
Owned by Japan-based KDDI, Telehouse operates four data centre facilities in London, three at its Docklands campus in the East end. These were among some of the first carrier-neutral facilities to be built in Europe and, with a current combined co-location space of 20,865 square metres, are an important element in Europe's data traffic landscape. Telehouse claims that as much of 70% of Europe's live Internet traffic passes through its London facilities. Rising traffic volumes, driven by growing use of cloud-based services such as video streaming, necessitates additional infrastructure investment.
The planned new facility, dubbed Telehouse North Two, will be built next to Europe's oldest data centre, constructed in 1990. It will add 23,134sqm of co-location space to Telehouse's footprint, taking the total to 73,395sqm. It will have more than double the capacity of the Telehouse North facility, which currently serves 101 carriers.