What Technology Investment Means for London’s Data Centres
02 September, 2015
London is swiftly becoming the tech hub of not only Europe, but the entire world. Between January and June this year, the UK tech sector received almost £900m in capital venture investment, dwarfing the £650m for the same period last year. What’s more, out of all the funding received for Britain’s tech firms, a huge 80% of it goes to London.
The figures have been revealed by London & Partners, confirming that UK tech start-ups have received a record amount of funding this year. Gordon Innes, head of the company said: “London is rapidly becoming the most exciting city in the world for tech. Innovative entrepreneurs across the capital continue to produce exciting new companies which are attracting the eye of the world’s investment community.”
Tech City Initiative
This rapid growth in such a small amount of time has been attributed to the Tech City Initiative, which was launched by Prime Minister David Cameron and Mayor of London Boris Johnson five years ago. In just five years, venture capital investment has increased by 10 times compared to what it was in 2010. This spotlight on tech has made the sector the economy’s fasting growing industry.
Eileen Burbridge, the Mayor of London’s tech ambassador for the city said, “Last year it took London tech firms 9 months to reach the billion-dollar mark, this year they’ve done it in six months. The city has become such a tech powerhouse because it excels over other tech hubs around the world. London combines the technology and digital innovation of Silicon Valley with the Wall Street financing heritage of New York and the policy making of Washington DC – all in one phenomenal city.”
The Digital Sector
Since the Tech City Initiative launched in 2010, London’s digital sector has experienced a growth of 46%. London is now the city of choice for tech start-ups from all over the world, as over the last decade more companies set up in London than in Paris, Munich, Dublin, Madrid and Amsterdam combined.
London’s Data Centres
What does all this literal capital investment (London-focussed funding) mean for the UK’s data centre industry? The city of course is one of the world’s key players, and is home to more and more data centres each year. It’s chosen as a top location mainly because of its usually low risk of natural disasters and extreme weather conditions – and because it’s the data hub of Europe.
However, is London always the best option for the location of your data centre? According to one data centre provider, London is running short of data centre space and the power supplies are close to saturation. Companies also face much higher costs running a data centre in the capital – sometimes building outside of London can reduce costs by half.
While London continues to attract worldwide investment, when it comes to data centre builds it might be worthwhile seeking out smaller UK cities or countryside locations.