The data center industry is gaining mainstream awareness and attracting investors – from investment banks, to venture capitalists and wooing those of the traditional real estate market. There was continued growth of this sector through the recession in the US and the UK and it is predicted to inject billions more into the market in the coming years. It is clear the Internet economy is on the rise.
Currently the UK’s internet economy accounts for more than 8% of the country’s GDP and that number is expected to rise to 12.4% by 2016 contributing trillions to the UK economy, according to a report by the Boston Consultant Group. The report also showed that 60% of the Internet’s contribution to the UK economy is the amount that users spend online shopping. For every £1 spent online to import goods, £2.80 is exported.
To support this market the UK has provided initiatives to entice tech start-ups and mature firms to move to their East London Tech City and to the ‘Silicon Fen’ (Cambridge) attracting thousands of new businesses. Growing from 15 in the Tech City area of London to nearly 5,000.
How does the data center market play a role?
The UK data center market is the largest in Europe with GAMFY firms investing in the area and major players like Equinix and Telehouse expanding their footprints. Based on the growth in the UK there is no indication that this will slow. On the contrary, growth is projected and firms will continue to expand their data center operations to the UK.