Digital Gateway to Europe publishes annual State of the Dutch Data Hub 2018
AMSTERDAM, DEC 6 - The Dutch data hub has shown solid growth in 2018 despite looming threats such as Brexit, increasing protectionism and a slate of regulation coming from the EU. This and more is described in the annual report ‘State of the Dutch Data Hub’ published by Digital Gateway to Europe today. Some key figures include an increased adoption of public cloud services, and average annual growth of 18% of the Amsterdam datacenter market the past 7 years and 2 new hyperscale developments by Google and CyrusOne.
No cause for concern
Although global political developments might cause some concern, Stijn Grove, managing director of Digital Gateway to Europe, points out this is not reflected by market developments. “In a continuously changing world with growing protectionism and an upcoming Brexit, the Netherlands' starting position as a data processing and distribution country is stronger than ever. The current state of affairs regarding the Dutch cloud, data center growth and connectivity demand shows that continuous investments are needed to match increasing demand. We believe that just as in other years, the Dutch Data Hub can shield itself from external factors and continue to be one of the most desired digital distribution points in the world.”
Pole position leverage
As the Netherlands has historically been a transit port for goods and services, the success of the Dutch data hub doesn’t come as a surprise says Grove. “The Dutch have always been quick to adopt innovation or drive innovation themselves. It was the first country, after the U.S., to be connected to the world wide web. Leveraging this pole position has since been one of the main reasons for double digit growth of the Dutch digital ecosystem. It is interesting to note that this ecosystem has become so robust that hyperscales are increasingly flocking to the Netherlands to set up shop. Last but not least our tax climate remains very favorable towards overseas digital companies looking to strengthen their data distribution capabilities or establishing EMEA or international headquarters for example.”
The ecosystem Grove describes is home to both the largest and the 6th largest internet exchanges in the world. This continues to have a profound effect on the Dutch digital economy, as is described in the report. In 2016, €24,6 billion was directly generated by the data economy. This does not only benefit companies: Dutch citizens continue to be the most well connected in the world. When compared internationally for example, the Netherlands ranks 1st when it comes to fixed broadband internet access (98% of all households). Given that digitization increasingly drives new business models, more than 70% of all innovation in the Netherlands is ICT related, which on its own adds a very positive dynamic to business- and product development in the Netherlands.
More on this and the current state of the Dutch data hub can be found in the report, available for download via www.digitalgateway.eu/dutchdatahub2018
Annual KickStart Europe Conference
To further support the bustling digital infrastructure industry in the Netherlands and Europe, Digital Gateway to Europe on January 14th and 15th 2019 for the second year organizes the KickStart Europe Conference in Amsterdam. During this two-day event, decision makers in the European digital infrastructure industries will discuss opportunities, current affairs and explore the emerging trends and technology shaping the digital industry and digital infrastructure of cloud, connectivity and data centers.
Learn more and get your ticket via kickstartconf.eu - use the promocode "KS-REPORT2019' for 25% discount!
90 percent of operational expenses are spent locally
The Netherlands data center country
The Netherlands is the most connected country in the world and Amsterdam is an important international digital hub. Combined with a reliable and favorable energy network, all of this makes the Netherlands an ideal country for data centers. It explains why we are on our way to becoming the number 1 data hub in Europe. This growth is also noticeable in the Holland above Amsterdam region, where the North Amsterdam data center campus is being created.
Digital Gateway to Europe, in collaboration with research agency Pb7, has carried out research on the economic impact of data centers in the region on behalf of Ontwikkelingsbedrijf NHN, the municipality of Hollands Kroon and Agriport A7. The research shows that data centers produce a major economic spin-off. For direct and indirect employment and infrastructure, these developments put the region on the map nationally and internationally as an attractive business climate.
Investment of € 2 billion
"Our earlier studies have already shown that the economic impact of multi-tenant datacenters in the Netherlands is considerable," says Stijn Grove, director of Digital Gateway to Europe, "In total, Dutch data centers contribute € 941 million to GDP, and companies such as Microsoft and Google have not even been included in these studies yet. "
In the 'North Amsterdam Datacenter Campus' report, the current situation is assessed, and two additional growth scenarios have been developed. An analysis of the status quo shows that a total of € 2 billion is invested by Microsoft in North Amsterdam: to build a datacenter of such size, over a period of 7 years an average of 900 construction workers are busy every day, says the report.
The expectation is that 350 to 400 employees will be required to keep the data center operational afterwards. These jobs will mainly be filled in locally, and contain an interesting mix from catering and cleaning to engineers. If we delve deeper into the operating costs, personnel costs and the investments to run the data center, we see a strong local influence: more than 90% of the costs are spent locally. In addition, there are induced revenues for the region; all these non-Dutch employees will live and eat somewhere during their long stay in the Netherlands, which benefits local services. For example, the Hotel Van der Valk in Hoorn has been occupied for years with people working on the projects in Middenmeer.
90 procent van de operationele uitgaven wordt lokaal uitgegeven
De Amsterdamse datacenter industrie groeit de laatste jaren gemiddeld 18% per jaar, en er wordt dan steeds verder buiten de stadsgrenzen gekeken. Ook Holland boven Amsterdam is inmiddels ontdekt: op het Agriport A7-terrein in Middenmeer, slechts 30 minuten rijden van Amsterdam, heeft naast Microsoft inmiddels ook Google een perceel aangekocht.
In opdracht van de regio becijferde Digital Gateway to Europe de impact van deze Noord-Amsterdam datacenter campus op de Nederlandse economie. En deze impact is groot; de totale investering wordt nu al geschat op €2 miljard.
Vandaag wordt dit rapport gepresenteerd bij het NHNext event van de regio Noord-Holland Noord. Download het rapport hier - de Engelse & Nederlandse versie.
The report reflects the growth and developments that have taken place in the data center sector over the past 12 months. The 198 multi-tenant data centers have a gross surface area of 546,000 m2 of which 308,000 m2 is net data floor. The power capacity of the single and multi-tenant data centers is estimated at around 1350 MW. Stijn Grove, Director of the Dutch Data Center Association, said: “We were not surprised to see that the industry also grew strongly in 2017. And the prospects for the entire industry are still excellent due to the ongoing digitization.”
The report is freely accessible for download here
By the industry, for the industry
"Only by collaborating we can prepare for the extensive growth in demand for data", says Stijn Grove, Chairman of KickStart Europe. "It is the only way in which the cloud, connectivity and data center industry is able to continue servicing the economy." To help the industry to work together, KickStart Europe was launched to kick-off the year 2018. Around 300 C-level executives, coming from 15 different countries, the industry came together to discuss future trends and investments in technology and digital infrastructure.
The Outlook 2018 report goes further where the event ended; what does the industry have to know about what is heading our way, and how can we as the industry prepare?
Growth, Growth & Growth
One thing we can expect for the future is growth. In relative numbers, such as 155% growth in XaaS spending in 2022, but most definitely in absolute numbers. Mobile data traffic in Europe is expected to grow to over 5700 PB per month in 2022. On a global scale, the revenue of AI will go towards $24 bln in 2022, compared to the $2,1 bln that was generated for AI in 2017.
According to IDC, the amount of zetabytes created on an annual basis will grow with almost 300% over the next five years. Mobile data creation is even growing faster, with video being the main driver. So there is a lot coming our way.
Download the 2018 Outlook report
The 2018 Outlook report by KickStart Europe is available for download here.
For more information on the KickStart Europe summit, please consult www.kickstartconf.eu or follow us on Twitter @KickStartEur.
The KickStart Europe Summit Conference is an initiative by Digital Gateway to Europe events.
Digital Gateway to Europe is the organisation promoting the data center industry in Europe. We organise events, trade missions, trade shows, launchpads and other meetups to share information about the digital infrastructure and data hub. Scale-ups, start-ups and enterprises who would like more in-depth information can consult our Digital Gateway to Europe knowledge database.
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