United Kingdom Virtus UK Datacentre Expansion Tied To Attractive Market Fundamentals

摘要

1. Virtus' datacentre expansion is opportunistic as it leverages relatively low operating costs and post-Brexit data sovereignty needs to pre-empt an upsurge in capacity demand. 2. UK cloud market to remain buoyant, although uncertainties regarding post- Brexit electricity costs pose a risk to the downside. Virtus' two-year USD645mn datacentre expansion project underscores our view that the UK is, and will continue to be, one of the most attractive cloud computing markets. While the UK's withdrawal from the European Union will likely have a negative impact for enterprises of all sizes and operational footprints, we believe UK independence will see a greater need for localised data sovereignty as most multinational businesses will still need to operate in or at least continue to trade with partners and clients in the country. Relatively cheap electricity, access to a large skilled IT staff base, access to high-capacity broadband backbones and content delivery networks and affordable industrial real estate mean that datacentre operators will continue to have a positive view of the UK market. Singapore Technologies Telemedia-owned Virtus will simultaneously build five new datacentres in the London area over a period of two years. While this plan - one of the most aggressive build-outs ever contemplated for Europe - includes some already-announced investments, the announcement is remarkable for both its size and relatively short timeframe, again signalling the continued importance of the UK market to datacentre operators. Virtus already operates three facilities near London and three of the new facilities will be located in Slough, just outside the M25 motorway ring around the capital, while the other two will be located closer to the capital. At the same time, existing facilities in Slough, Hayes and Enfield will be expanded.