Knight Frank, DC Byte Q2 Report Highlights Emerging Data Centre Markets and Growth Across EMEA Region

August 17, 2023

LONDON (August 17, 2023) – In its latest quarterly report, Knight Frank, the largest independent global property advisor, delves into the dynamic landscape of the EMEA region’s data centre markets, spotlighting the emerging hubs that are driving growth in this critical sector. The recent report, created in partnership with DC Byte, the leading data centre research and analytics platform, focuses on valuable insights into the trends shaping the data centre industry across the region. Key cities reported include Bucharest, Cairo, Casablanca, Istanbul, Johannesburg, Manchester, Munich, Nairobi, Vienna, Warsaw, and Zurich.

Total capacity across these EMEA data centre markets has reached a notable milestone, surging past 1,577MW. This increase comes after a significant rise of 137.2MW in the second quarter of this year. The report indicates that growth across these markets has been diverse, with strong momentum observed in the Cairo, Istanbul, and Manchester markets. Challenges such as higher borrowing rates, local power network limitations, and looming economic concerns have temporarily dampened growth in certain markets. Nevertheless, the overall outlook remains robust, buoyed by significant developments on the horizon.

“The Knight Frank report for Q2 underscores an unwavering commitment to navigating the ever-changing dynamics of the market. As we witness emerging data centre hubs from Bucharest to Casablanca, and witness powerhouse expansions in Istanbul, Cairo, and Manchester, it is evident that technology’s transformative influence continues to reshape the region,” said William King, Managing Director for EMEA region at DC Byte. “This report stands as a compass guiding stakeholders through a dynamic landscape. With meticulous analysis and comprehensive insights, this report equips investors, operators, and decision-makers with the knowledge needed to navigate the complexities of emerging data centre markets.

Dynamic Market Growth and Diversification: Emerging hubs like Bucharest, Cairo, and Casablanca are rapidly evolving into significant players, attracting both domestic and international operators. This trend underscores the region’s growing importance in the global data centre landscape, driven by factors such as strategic geographic locations, increased demand for cloud services, and a surge in digital transformation initiatives.

Strategic Infrastructure Investments: Notable developments, such as Microsoft’s plans to establish ‘Data Centre Regions’ in Vienna and Warsaw, signal a strong commitment to fostering technological innovation and supporting local ecosystems. Additionally, the deployment of the Medusa subsea cable network is set to revolutionise data delivery, providing cost-efficient and high-speed connectivity that will fuel cloud services and online platforms across multiple markets.

Shifts in Demand and Industry Leadership: While traditional players and local telecommunications providers have played pivotal roles, international giants like Equinix are making strategic inroads. Hyperscale demand, driven by colocation operators and public cloud companies, is redefining the market dynamics. This transition is not only shaping supply and take-up rates but also driving the evolution of the market from retail to wholesale colocation, positioning the region for sustained growth.

These insights illuminate the evolving trends, opportunities, and challenges within the EMEA data centre markets, providing stakeholders with a comprehensive understanding of the dynamic forces shaping the industry’s trajectory.

For more detailed insights and analysis, please refer to the full report here.