The worldwide knowledge heart market is underneath an unprecedented squeeze as we transfer into 2023.
On one hand, we’ve a long-term problem surrounding the sustainability of the trade’s development trajectory in important hub markets. On the opposite, we’ve an acute short-term drawback with power costs within the colocation sector.
These points mix to create an uncomfortable part out there proper now.
That is what I unpacked throughout my presentation at PTC ’23. I began with a have a look at the rising long-term query—can utilities help the tempo of capability development within the knowledge heart sector?
My slides targeted on the present scenario in 4 of those markets—Singapore, Amsterdam, Frankfurt, and Washington. I fleshed out the actions that regulators are taking in these hubs and the way the market’s responding.
I then turned to the short-term drawback we’re dealing with—power market volatility. For the trade, the query is whether or not hovering energy costs instantly have an effect on colocation charges and whether or not prices are about to get very uncomfortable within the knowledge heart area.
The reply? It’s sophisticated, however sure.
The underside line is that costs have began to rise and are anticipated to go increased in 2023.
For a a lot nearer have a look at the matters talked about right here, I invite you to obtain my full slide deck.
