Industry news

 

    Credit crunch hits datacentres

    Tue 08-Jul-2008

    The current gloomy economic climate appears to have affected the capital's datacentre sector, ZDnet.co.uk has reported.

    According to the news provider, no corporates have taken up space in London in 2008, with figures from real-estate advisory firm CB Richard Ellis showing businesses chose the city for four per cent of datacentre space throughout Europe in the first quarter of the year.

    The slow uptake has been blamed on uncertainty in the financial sector.

    Andrew Jay from CB Richard Ellis said: "This has been the lowest quarter for take-up in London since the emergence of the corporate market in 2004."

    ZDnet.co.uk reported that datacentre-space take-up across Europe during the first three months of 2008 was 18,620 metres, a drop of 64 per cent on the previous quarter.

    Some 61 per cent was taken up in Frankfurt, 28 per cent was in Paris and four per cent and three per cent was in Madrid and Amsterdam respectively.

    Record levels of defaults on subprime mortgages in the US sparked the credit crunch which has seen a tightening of banks' lending practices. ADNFCR-1505-ID-18674907-ADNFCR