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IT managers are running out of space not only in London, where space is at a premium, but also in the US as a data center space shortage looms, according to Transitional Data Services Michael E Bullock, president and co-founder.
Bullock examines the escalating costs for data center space and warns those in charge of IT departments to plan for a “critical resource shortage,” lest they squander much of their budgets.
In London, England, data center space constraints have already hit, where the city’s facilities are more than 85 percent full, resulting in lease costs doubling in just the last 12 months. In May 2008, London’s electricity supplier halted data center building in preparation for the 2012 Olympics to limit data centers’ toll on London’s already-taxed grid.
Not immune from the same effects driving up prices in the UK, Bullock notes that colocation space state side in New England have increased nearly seven times over the past five years. “In the metro New York market, don’t be surprised to see prices in the $45 to $50 range,” Bullock wrote.
Bullock also debunks the myth that the economy’s downturn will drive down data center costs just like real estate prices. He explains that real estate only accounts for no more than 10 percent of a leased or newly built data center so the cost of real estate barely factors into the cost.
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