September 25-26, 2024 The Wynn Las Vegas, NV More information

Paris + Marseille DCI Report 2024: Data Centre Colocation, Hyperscale Cloud & Interconnection

$8,500.00 USD


 Paris is one of the top four data centre markets in Europe – commonly referred to as the FLAP (Frankfurt, London, Amsterdam, Paris) markets – and remains at the heart of the global hyperscale cloud build-out. All of the top five US-based public cloud platforms (AWS, Azure, Google, IBM, Oracle) are now online in France and a significant number of webscale providers have followed. France is also home to local champions such as OVHcloud and Scaleway that have meaningful levels of scale. Adoption of cloud infrastructure continues to trend forward in a positive direction, driving the need for data centre capacity, despite pervasive reluctance to adopt US-based cloud services and a relatively conservative enterprise IT culture. This has led to the rise of sovereign clouds and hyperscalers have partnered with local entities to make these services available. The market in France is not as hyperscale-centric as others, and infrastructure is spread across a slightly more diverse and fragmented market, but the demand profile is there to support it.

Another driver of demand for infrastructure in France is the connectivity hub in Marseille, which remains crucial for carrying traffic within France and in and out of Europe to regions across MEA to APAC. The risk of having a single point of failure in Marseille has led to more cable landings in nearby Spain and Italy. But the new routes have not impacted demand in Marseille. Traffic levels continue to rise and infrastructure has struggled to keep pace.

Amid the growth in adoption and elevating scale, the Paris + Marseille markets have come up against supply constraints. Already lengthy permitting processes extended during the pandemic and were exacerbated by the requirements of the upcoming Paris Olympics. The aftermath of the pandemic, war in Europe and labour shortages have pushed building and energy costs higher. The core building blocks of land and power are difficult to acquire and there is not insignificant local opposition to data centres.

The challenges are creating opportunities. AWS has more or less abandoned plans for a self-build and other hyperscalers are not likely to try and self-build in this complex environment. This makes data centre colocation the preferred deployment model and should maintain demand at consistently high levels. The Paris + Marseille market continues to scale. In 2024, the Paris market is projected to be worth €1,264.3m and grow at a five-year CAGR of 21.7%. Absorption rates continue to climb as hyperscale demand outpaces available capacity.

This report is an excellent resource for any service provider, investor, real estate professional or enterprise end user looking to understand and project the data centre market in Paris and Marseille or find a data centre solution.

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