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.”
Going back a year, 2017 was EvoSwitch’s best year ever, but we found ourselves thinking “what about the next five years?” We had a great position in the market, but we needed more funds for build-out, more scale, and we needed to expand in the high-growth FLAP (Frankfurt, London, Amsterdam, Paris) zone. So I started talking to people about partnerships, and a large number of US and Asian companies were interested in landing in Europe, but nobody wanted just a partnership, they all wanted to buy us!
For the expected COBRAcable, international collaboration is key
The COBRAcable lands in Eemshaven, a great location for data centers, partly due to its perfect connectivity to the Dutch digital infrastructure with Amsterdam as global hub. To strengthen this special bond between the two countries, Digital Gateway to Europe invited a delegation of 40 Danish stakeholders from Esbjerg to Amsterdam-based Switch Datacenters.
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.
Amsterdam, July 31, 2018 - Cloud adoption grows, IoT networks are rolled out globally and the European data center markets continues to show strong growth. Just a grasp of the insights that visitors received last January at the first edition of KickStart Europe. Approximately 300 C-level executives from 15 countries, attended the strategy summit focused on European trends and investments in data centers, fiber networks and cloud. Due to its success, the second edition of KickStart Europe will again be held at the international conference center Amsterdam RAI, on January 14-15, 2019.
"We want to ensure that we have options to continue to expand our data center presence in Europe if our business demands it," Google spokesman Mark Jansen said Thursday.
Google already owns a data center in the northeastern town of Eemshaven in the Netherlands, and announced earlier this year it would invest 500 million euros ($582.2 million) to expand it, after initially spending 600 million euros.
Google didn’t disclose how much it spent on the plot of land outside of Amsterdam. Other tech firms, including Microsoft Corp., have built data centers in the area, which offers a relatively cheap supply of sustainable electricity, according to the Netherlands’ foreign investment agency.
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
If you’re looking for a great tech city to find your next job in, then stop looking at Silicon Valley and start looking at Amsterdam. The Dutch capital was named the best European Tech City to work in by Hubspot, which recently did a study into Europe’s tech scene.
This comes as no surprise if you consider that 578 international ICT (information and communications technology) companies have offices in Amsterdam, with 170 of them picking Amsterdam to establish their headquarters.