Datacentre prices soar in 'rack crunch'

The price of a datacentre rack rose by an average of 8.5 percent across Europe last year, with more price increases expected in 2009, according to a UK-based tracking company, Tariff Consultancy.

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The price of a datacentre rack rose by an average of 8.5 percent across Europe last year, with more price increases expected in 2009, according to a UK-based tracking company, Tariff Consultancy.

The latest version of its Data Centre Price Tracker survey measures the average cost of a data centre rack in fourteen European countries, namely Austria, Belgium, Czech Republic, Denmark, France, Germany, Ireland, Italy, Netherlands, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

It found that the UK and Austria now have the highest average rack prices in the survey at 1,024 euros (£906) per month. However some other countries have a higher headline figure because of specific local conditions. For example, 1,300 euros (£1,150) per month was recorded in Denmark; 1,040 euros per month (£920) in Switzerland, and 1,029 euros (£910) per month in France.

Italy and Germany were the lowest average priced country for rack space with 545 euro (£482) per month, and 673 euros (£595) per month respectively.

According to Keith Breed, the report's author, Denmark is a small market where the local telecom charges are higher, which in turn effects rack prices and skews the figures. France is apparently high because most data centres are built in the Paris region, which is prone to network connectivity and bandwidth bottlenecks. Meanwhile, Germany has a lot of local data centre capacity with facilities spread right across the country.

Countries that saw the highest per rack price rises in 2008 include Portugal (30 percent), Denmark (24 percent) and France (17 percent).

Tariff Consultancy blames the price rises on the fact that data operators are increasing their prices in order to cover the costs of building newly furbished space, as well as the introduction of new types of Rack product, "which reflect the costs of providing enhanced power which increases the average price per rack."

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