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Dutch Data Centers 2016 State of the Dutch Data Centers The new foundation 2 | © 2016 Dutch Datacenter Association Dutch Data Center Report 2016 State of the Dutch Data Centers The new foundation © 2016 Dutch Datacenter Association | 3 COLOPHON The Dutch Data Center Report 2016: State of the Dutch Data Centers is published by the Dutch Datacenter Association. Edition Editor-in-Chief State of the Dutch Data Centers 2016: Stijn Grove June 2016, year 2 Managing Director Dutch Datacenter Association Contributions Dutch Datacenter Association (Stijn Grove, Noor van den Marketing & artwork Bogaard, Luuk ter Weeme) Noor van den Bogaard (DDA) PB7 Research (Peter Vermeulen) Michiel Cazemier, Gaby Dam, CBRE Data Centre Solutions (Mitul Patel) Wouter Pegtel (Splend) Research by Print quantity Peter Vermeulen First release, 14 Jun 2016: 100 Principal Analyst PB7 Availability Our publications are free to download on Mitul Patel www.dutchdatacenters.nl Associate Director CBRE DDA thanks all people who made this report possible. A special thanks to Simon Besteman, Micky van Vollenhoven and Marc Gauw. © 2016 Dutch Datacenter Association TERMS OF USE AND DISCLAIMER The Dutch Data Center Report 2016: State of the Dutch Data Centers (iii) accept no liability for any use of the said Data or reliance placed on it, (herein: “Report”) presents information and data that were compiled and/ in particular, for any interpretation, decisions, or actions based on the Data or collected by the Dutch Datacenter Association (all information and data in this Report. referred herein as “Data”). Data in this Report is subject to change without notice. Other parties may have ownership interests in some of the Data contained in this Report. The Dutch Datacenter Association in no way Although the Dutch Datacenter Association takes every reasonable step to represents or warrants that it owns or controls all rights in all Data, and ensure that the Data thus compiled and/or collected is accurately reflected the Dutch Datacenter Association will not be liable to users for any claims in this Report, the Dutch Datacenter Association: (i) provide the Data “as brought against users by third parties in connection with their use of any is, as available” and without warranty of any kind, either express or implied, Data. including, without limitation, warranties of merchantability, fitness for a particular purpose and non-infringement; (ii) make no representations, The Dutch Datacenter Association, its employees do not endorse or in any express or implied, as to the accuracy of the Data contained in this Report respect warrant any third-party products or services by virtue of any Data, or its suitability for any particular purpose; material, or content referred to or included in this Report. 4 | © 2016 Dutch Datacenter Association TABLE OF CONTENTS Colophon 4 Preface 7 About the report 8 Executive summary 9 The new foundation Data centers 11 Data center types 12 How a data center works 13 Infographic 14 Data center expertise 16 Data center customers 18 Regional data centers 19 Digital hub 21 Campuses 22 Digital Gateway to Europe 24 Representation 26 Related associations 28 Digital clusters 29 Market research State of the Dutch market - PB7 31 Key EU data center market - CBRE 41 Impact Effects on the economy 47 In- and outbound 48 Sustainability 49 Energy use 50 Trust 51 Future trends & growth 52 Data center myths 56 Recommendations 10 + 1 Recommendations 59 About Dutch Datacenter Association 63 PB7 66 CBRE 67 © 2016 Dutch Datacenter Association | 5 6 | © 2016 Dutch Datacenter Association PREFACE The Dutch data center sector is in excellent shape. Every online service originate from data centers. The online sector is growing rapidly and so is the data center industry. Especially in the Netherlands as it is the Digital Gateway to Europe. The reality is that without data centers our economy comes to a halt. Data centers are therefore the main enablers of the digital economy. They are the new foundation. Digital services play an increasingly important role in our lives and the economy. Data centers are essential for these services to operate properly. All these online services, such as cloud, mobile apps and other digital applications are provided from within data centers. Data centers thus form the foundation of our (digital) economy. Data centers underpin a wide spanning range of activities across government, business and society. They form an important part of our national critical infrastructure. A whole ecosystem grew inside and around the Dutch data center precense and that is why many industry giants in the cloud, internet, hardware, and data industries choose the Netherlands as the ideal digital hub to operate from. With this annual report, the second time it is published, the Dutch Datacenter Association would like to emphasize the importance of this crucial industry and provide insights into how this sector works, grows and what its challenges are, as it is destined to play a crucial role in the future growth of our economy. Stijn Grove Managing Director Dutch Datacenter Association © 2016 Dutch Datacenter Association | 7 ABOUT THE REPORT The Dutch Data Center Report is annual study initiated by the Dutch Datacenter Association. The main focus is to provide a quantitative overview of the Dutch multitenant data center market, the Netherlands as Digital Gateway and the direct and indirect way the data center industry impacts the Dutch (digital) economy. The report is a combination of research exclusively done by PB7 Research, CBRE Data Centre Solutions and the Dutch Datacenter Association itself. It focuses on data centers that rent out data center space in the form of housing or colocation. Many of these data centers will also offer hosting services. Not included are single tenant data centers that house server racks for internal use. Major hyperscale data centers from digital giants such as Microsoft and Google are also not part of the scope. 8 | © 2016 Dutch Datacenter Association EXECUTIVE SUMMARY Data centers are the foundation of our digital The Amsterdam metro is responsible for 64% of all economy multitenant datafloor in The Netherlands. As a location, Digital services play an increasingly important role in our it brings multiple benefits, including one of the biggest lives and the economy. Data centers are essential for these internet exchanges in the world, excellent connectivity, services to operate properly. Online services such as cloud, low energy costs, a stable energy grid and an world class mobile apps and other digital applications are provided infrastructure for international business. from within data centers. Data centers thus form the foundation of our (digital) economy. The Digital Gateway to Europe is considered as the 3rd international hub (‘mainport’) of the Netherlands next to Having a strong data center infrastructure has the Port of Rotterdam and Schiphol Airport. become crucial to any economy The Netherlands has one of the strongest data center Future (challenges) infrastructures in Europe. Over 90% of organizations in the In both the internationally oriented Amsterdam Metro Netherlands have high quality data center facilities at less and the regional datacenter markets, we predict long term than 30 minutes drive. continued growth. The data explosion and continued rise of online services drive a steady data center demand. We have identified 271.000 square meters of multitenant Two thirds of all data centers expect to rent out more datafloor, an increase of 5% compared to the Dutch meters over the next 12 months, and only 18% expects Datacenter Report 2015. Most of the growth can be a decrease. On the other side, Dutch businesses expect contributed to the metropolitan area of Amsterdam, while a strong shift away from using compute and store out of most regional data centers have actively improved their their internal datacenters towards colocation, hosting, and utilization rates. the cloud. The Digital Gateway to Europe For our economy, the direct and indirect effects are huge. As the fastest growing data center market in Europe, It is of the utmost importance to safeguard the growth of the Digital Gateway to Europe is the place in Europe to this sector. Focus, support and a balanced approach by our distribute your data. Centered around the Amsterdam government is needed for this fast growing industry. Let’s Metro region data centers have grown with an average of continue and build on our lead. 15% per year for the last 5 years. Due to the steady high take up all data centers are constantly expanding their supply to keep up. “DATA CENTERS ARE THE NEW FOUNDATION” © 2016 Dutch Datacenter Association | 9 THE NEW FOUNDATION >>>>>>>>THE NEW FOUNDATION >>>>>>>>>>>>>> 10 | © 2016 Dutch Datacenter Association DATA CENTERS What is a data center? Key functions of data centers Data centers are relatively new in our urban landscape. In fact, many people are unaware that they even exist. A data 1. Reliability center is a facility, often an anonymous-looking industrial A professionally managed data center has backup systems building, used to house computer systems and associated that are too expensive for most businesses to purchase and components, such as connectivity and storage systems. maintain. Redundancies in cooling, power and communication systems ensure the constant connection that is essential It generally includes redundant or backup power to any business. Constant up-time means uninterrupted supplies, redundant data communications connections, access to your organizations data and servers by staff and environmental controls (air conditioning, fire suppression) customers. and various security devices. Large data centers are industrial scale operations. 2. Energy efficiency Data centers bring huge efficiency benefits. By concentrating The importance of data centers IT equipment in one place and by operating data center Data centers are the main enablers of the digital economy. facilities more professionally huge amounts of energy are Data centers underpin a wide range of activities across being saved compared to on-premise situations.
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