Is Brexit a threat to London’s data center?

United Kingdom’s decision to leave the European Union might prove as a big threat to London’s data centers says a survey conducted by 451 Research. The research firm confirms that Brexit might challenge the strategy of international hosting firms using London as their European Base. The survey also revealed that the decision of exit might also affect more than 1.5 million of them who were employed in server farms operating all around UK.

Obviously, the results of the survey are as expected as London has been serving as a European capital of data centers, hosting and cloud markets from past ten years. The region has been serving as an IT service provider from past few years as it has broadest supply, the largest choice of facilities, a common working language and skilled labor force in tech stream.

With the exit of British, the other data centers in Frankfurt, Paris and Amsterdam will surely gain from customers or providers looking to move their data or data center facilities out of UK.

However, it’s not going to prove that easy for data centers which are looking to bank on London’s exit. They will feel the shortage fro data center space, capacity and skills in coming years. Building permits can be much more restrictive and will take longer to be granted.

Dublin will be the second big region of demand as already it has Facebook and Apple operating their server farms. Its location is just across the Irish seas and well connected to transatlantic sub sea cables which might make it a convenient halfway house for some looking to have low latency connectivity to UK, but still in EU- away from US snooping laws.

Data centers operating in Frankfurt will also see a lot on customer influx in coming years as many big companies offering data center infrastructure have already heavily invested in the said region.

Across the shore is US, which servers as a multi-tenant data center market.

The 451 report also noted that, while businesses hope that the period of disruption is short- to medium-term in nature, only time can show how Brexit will affect the IT outsourcing and services industries in the long term.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s