European data centres eye APAC post-Brexit
Thu 4 Aug 2016
APAC Reach, a marketing and research company focused on assisting expansion throughout the Asia Pacific region, has reported a marked increase in European clients interested in data center investments in the area following the UK Brexit referendum.
In a press release this week, APAC Reach reported that in the six weeks since the Brexit referendum, the number of European clients seeking Asia Pacific data center solutions has more than doubled. Amy Parcell, the European Account Manager for the company, said, “We had no idea what sort of impact the referendum might have on the business, assuming like most that it would be a remain. But when it went the other way, it was not long before the interest levels in our service increased significantly.”
An increased interest in European companies extending their global footprint indicates that companies are in global growth that is contrary to forecasts released by the International Monetary Fund (IMF). The IMF revealed that prior to the Brexit referendum they had been prepared to upgrade global growth estimates. However, the global growth forecast released last month showed a 3.1% forecast for 2016, down 0.1% from April and 0.3% from January forecasts. The 2017 forecast was cut as well, from 3.5% in April to 3.4% in July.
APAC Reach reported that not only have its European clients shown a marked increase in interest in data center development in the APAC region, they have also expanded their offerings into areas including training and security based on client interest in these services. It reports that a significant majority of the clients of APAC Reach have “a fresh revenue stream coming in from an area that had not been identified as an opportunity prior to the referendum in the United Kingdom.”
While many analysts stated concerns with the effect that Brexit might have on the UK’s robust data market prior to and immediately following the referendum, the acknowledged concern was that companies would move from the UK to other providers across Europe, maintaining the positive aspects of association with the European Union. Others believed that the Brexit decision would have only a minor effect on the data center industry. Very few predicted that a pro-Brexit decision would cause an increase in data center businesses in the Asia Pacific region as well.