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Data Centres Fall Down the Pecking Order in London, Says CB Richard Ellis

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Reference data projects may be seeing investment this year but data storage in a physical sense is proving problematic during the credit crunch. That is if you look at the take-up in London’s data centre market, which has seen very little investment during the first quarter of this year, according to real estate advisor CB Richard Ellis.

“This has been the lowest quarter for take-up in London since the emergence of the corporate market in 2004. London has been significantly affected by the current financial climate due to the large number of financial services companies in the market,” says Andrew Jay, head of technology practice group at CB Richard Ellis.

The real estate advisor reckons that uncertainty around IT budgets in the financial services sector has caused a dip in spending on data centres, but it expects this outlook to improve by the end of the year.

“The European data centre market appears to be showing some signs of resilience compared with the overall real estate market. The strong levels of take up we have seen in Frankfurt since the middle of last year are continuing, with encouraging figures in Paris and Madrid and as such, the tier 1 data centre market remains buoyant despite the effects of the credit crunch on the corporate sector,” adds Jay.

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