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Singapore and Madrid are the fastest-moving data centre markets

Written by Fri 28 Jan 2022

A new report from Cushman & Wakefield named Singapore and Madrid as the top movers in the global data centre. This assessment was made based on a variety of factors, such as sustainability, connectivity, and political stability – analysing 55 global markets, 1,333 data centres, and 55 global markets to determine rankings.

Singapore moved up from fifth place to tie for second place with Silicon Valley. Both Singapore and Silicon Valley were determined to have high demand, available cloud services, excellent connectivity and strong ecosystems.

However, there are two major forces at work that make Singapore’s jump to the second-place spot surprising. First, it is one of the most expensive places to purchase land for data centre construction. It came in with 53rd for land cost, at an average cost of $2,000 per square foot – as compared to $5 per square foot in the lowest-priced market, Columbus, Ohio.

Additionally, the government of Singapore placed a moratorium on data centre construction on the island, restricting the development of new facilities. However, the government is expected to

Read more: How is India benefitting from the pause in data centre expansion in Singapore?

The impact of these factors on Singapore’s total rating, however, was lessened by the nation’s first-place ranking in the smart city and fibre connectivity categories. Moreover, Singapore expects to lift the moratorium on data centre construction once it passes new regulations that will create strict energy efficiency requirements for new data centres: and may require retrofitting of older facilities to meet new requirements.

Madrid also made a strong showing on the Cushman & Wakefield list, moving up farthest in the rankings from number 34 last year to number 19 this year. These gains were attributed mainly to the availability of cloud services from major data centre providers, as well as its low risk for natural disasters.

Internet penetration across Spain is at 91%, and demand for online services has increased over the past several years as a result of the global pandemic. This, along with enterprise digitalization and adoption of cloud services by businesses has led analysts to predict data centre colocation in Spain to grow at a CAGR of 5.4% year-over-year from 2021-2026.

Additionally, Spain has strong government support for renewable energy, promising to install 50 GW of renewables as part of the National Integrated Energy and Climate Plan. The government has also dedicated $720 million USD to develop AI solutions for use in Spanish data centres.

Written by Fri 28 Jan 2022

Tags:

data center data centre finance Madrid markets Singapore Spain
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