UK data centre industry demand booming, says TeleCityGroup CEO

Despite recent expansions into other parts of Europe, TeleCityGroup CEO Michael Tobin expects further growth in data centre demand in its existing UK market.

The colocation data centre provider has been busy expanding its operations into wider parts of Europe recently with a string of acquisitions. This has involved the buyout of Finnish firm Tenue for £3.7 million, and the £25m purchase of Istanbul-based Sadece.

Speaking at DataCenters Europe 2013, Tobin explained that the two acquisitions will act as hubs for traffic coming through from Russia and the Middle East, respectively.

However he added that there is still plenty of demand for expansion in the UK market as well as further into Europe. The company currently owns three facilities in London's Docklands, four in Manchester, as well as others in Dublin, Amsterdam, Frankfurt, Milan, Paris and Stockholm.

“London is still a white hot market and there is a highly connected space in that Docklands facility," he said. "That market is really strong – I would like to think we could announce more capacity coming on there."

"Amsterdam is also very strong, and you should see more announcements from us there.”

Outside of London, Tobin also pointed to investment in Manchester as benefiting the operator's UK business.

“You have to think about where the internet hubs are. Manchester was very relevant in the sense that you have got the BBC and the whole media dynamic moved up there. About six percent of the UK's internet traffic goes through there.”

He added that the company had made significant investments in its existing infrastructure in recent quarters.

“We have put in more capex into our existing markets than in any other period in our history. We spent about £170 million in our existing market last year, and increased that capacity by 26 MW of customer power in one year.”

Tobin ruled out any plans for TeleCityGroup, which supports Amazon Web Service’s operations in the UK, to move into cloud services itself.

“If I thought I would be able to compete with the IBMs to the Amazons I would probably be fooling myself,” he said.

“We do the core base infrastructure really well, and we make a good return so I think we will stick with that. We will be the location of choice for that, as we are the location of choice for cloud providers.”

Copyright © 2013 IDG Communications, Inc.

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