The DDA's market report shows the growing importance of data centers during the current crisis and provides insight into a sustainable future June 11, Amsterdam - With 55% of the workforce working from home, the Dutch rely heavily on its digital foundation. This has clear sustainability gains: the Netherlands consumes 10% less energy and has so far emitted 5 Mton CO2 less, while the power consumption of the data centers themselves increased by only 1-4%. This is evident from the annual market report, entitled "Go Digital, Act Sustainable", which trade association Dutch Data Center Association (DDA) presents today during an online knowledge event. The annual "State of the Dutch Data Centers" surveyed the Dutch data center market for the sixth time. The theme "Go Digital, Act Sustainable" shows that two important global developments, digitalization and the energy transition, come together in data centers. Data centers facilitate the digital economy, and also work hard on their efficiency. In addition, the DDA reports that 86% of their members use green energy; in the Amsterdam Metropolitan Area, where 74% of DDA data centers are located, this is even 99%. Growth of the Dutch data hubThe demand for data centers services keeps growing, even during these turbulent times. The total Dutch data floor area expanded by 10% last year. The 189 Dutch colocation data centers now jointly cover 378,000 m2 of data floor. The DDA survey shows that the sector sees finding new customers, attracting suitable personnel and having sufficient power connections as key challenges for further growth. "The importance of data centers is increasingly felt, especially during the Covid-19 lockdowns, but is also shown via the successive years of fast growth," says Stijn Grove, Managing Director of the DDA. A consequence of this increased importance is that the sector is put under closer scrutiny. In July last year two municipalities within the Amsterdam Metropolitan Area (MRA), Amsterdam and Haarlemmermeer, announced a temporary pause in issuing new permits for data center projects. Since the announcement, there has been an ongoing positive and constructive dialogue between the DDA and governmental parties on both a regional and national level. In consultation with the sector, the new policy documents will be submitted to the relevant municipal councils in early July for approval. "We are positive and happy that the Amsterdam region now has a clear growth path towards the future," says Stijn Grove. "The already fully electrified data center sector shows how growth can take place in a sustainable manner, with the sector continuing to work hard on higher energy efficiency and reuse of residual heat." "Go Digital, Act Sustainable" The “State of the Dutch Data Centers 2020” report will be published this morning during an online knowledge and network event. In addition to a presentation of the research, the competitive position of Amsterdam compared to other European data hubs such as Frankfurt and London will also be discussed by CBRE. The online event is free to attend, you can register via https://2020dda.eventbrite.nl/ The report “State of the Dutch Data Centers 2020” can be freely downloaded via the DDA website. About Dutch Data Center Association Dutch Data Center Association (DDA) is the industry organization of data centers in the Netherlands, the foundation of the digital economy. We now connect 90% of the market-leading data centers in the Netherlands with a mission: to strengthen economic growth and profile the data center sector towards government, media and society. We articulate industry views on regulation and policy issues, working in the broadest possible coalition. www.dutchdatacenters.nl The Netherlands is one of the leading countries in Europe when it comes to digital skills - according to the Central Bureau of Statistics (CBS). Dutch youngsters (aged 12 -15) become more skilled in the use of the internet, computers and software compared to 2015. Boys and girls do not differ in digital skills, young people and young adults do, according to research by Statistics Netherlands.
Together with Croatia and Estonia, the Netherlands belongs to the leading group of countries in the European Union with the largest share of young people (16 to 25 years) who have more than basic digital skills. The share of young people with more than basic skills is lowest in Romania (22 percent) and Bulgaria (29 percent). Italy, Hungary and Greece also score lower on this point (around 40 percent) than the EU average in that age group (56 percent). In 2019, 96 percent of Dutch adolescents aged 12 to 25 used the internet (almost) every day. In 2015 this was still 93 percent. 72 percent of young people had more than basic skills in 2019, compared to 63 percent in 2015. In 2019, 41 percent of the over-25s in the Netherlands had more than basic digital skills, compared to 34 percent in 2015, according to Statistics Netherlands. However, there is a difference between 12 to 18 year olds and 18 to 25 year olds: 62 percent of young people and 79 percent of young adults have more than basic digital skills. The two age groups differ most in the area of information and computers / online services. The digital skills of young people are determined by Statistics Netherlands on the basis of results in four sub-areas: communication, information, computers / online services and software. In 2019, the share of young people with more than basic skills was greater (94 percent) in 2019 than in other areas. This includes emailing, calling over the internet, using social networks and uploading homemade photos, music, videos, text or software. In the first half of 2020, Google will open its new data center at Agriport in Middenmeer. Google is investing a billion euros in the Netherlands in the new construction of this location and the expansion of the complex in Eemshaven in Groningen. The data center in the municipality Hollands Kroon will accommodate around 125 employees. Fabien Vieau is principal in charge of Energy and Data Center Location Strategy for Europe, the Middle East and Africa. Among other things, he and his team are responsible for determining where the new Google data centers will be built. Outside of America, the Netherlands is the first country where Google is building two data centers. “In our search for new locations we look at the right environment, the right infrastructure, the reliability and availability of power, the possibilities of renewable energy, the right labor forces and how welcoming the community is. We are very familiar with the Netherlands thanks to our presence in Eemshaven and we are convinced of the possibilities here.” Attractive location The Google data center is not the only one of its kind on Agriport A7. There are already several Microsoft data centers in the area. Vieau calls the Netherlands a digital frontrunner with good facilities. “There is a reason why Microsoft and we choose the same locations for our data centers. The Netherlands has an excellent digital infrastructure, sufficient renewable energy sources and qualified personnel. Equally important is the support of the local community. All these factors together make it attractive for us to further expand our presence in the Netherlands. The choice for Agriport was obvious. It is close to Amsterdam, the European data traffic hotspot and has everything we are looking for, including sustainable energy supplies." Half a kilometer Google is doing everything it can to reduce its own energy consumption as much as possible, Vieau says. “Data centers are the backbone of the internet. They are full of rows and rows of servers, interconnected by bundles of fiber optic cables. The countless flashing lights symbolize the data that passes to keep our services up and running, such as Gmail, YouTube, Google Drive and Maps. There used to be a belief that data centers should be as cold as possible to ensure that servers would not overheat. We design our own servers and do so in a way that they function well at 27 ºC. Our employees walk around with short sleeves. Did you know that our data center in Agriport is almost 500 meters long? That is longer than the Eiffel tower is high!" 100% renewable energy Crucial for a data center is electricity, in large quantities and preferably from sustainable sources. It is a priority for Google to match the energy consumption of its data centers and offices with 100 percent renewable energy. The company has signed several PPAs: large-scale, multi-year contracts for the purchase of sustainable energy, including four such deals in the Netherlands. These deals give developers of wind and solar parks the economic security to invest in new capacity, Vieau explains. “The potential cooperation with local partners and the future option to use our residual heat for heating the nearby greenhouses, whether or not in combination with geothermal energy, certainly played a role in the decision to move to Agriport. Our ambition is to run our data centers 24/7 on carbon-free electricity. This means that we must move towards new technical solutions and storage methods for green energy. That is a major challenge that is still in its infancy. It is an ambition that we can only achieve in collaboration with local partners." The Development Agency NHN mediates in finding local partners. "Our relationship is good," Vieau believes. “We have had several conversations and our sustainable ambitions resonate with them. They have started introducing us to various local stakeholders with whom we hope to enter into a partnership. We see potential.” Proud for the entire region It is the role of the Development Company NHN to facilitate the arrival of new companies such as Google as smoothly as possible, says Bjorn Borgers, acquisition leader. “The arrival of all data centers at Agriport is very positive. It provides direct and indirect employment, investments in sustainable energy projects and an accelerated upgrade of the regional energy infrastructure. For example, Tennet is investing heavily in a new substation, the Wieringermeer Wind Farm is being connected, fiber optic connections are being upgraded. It also raises questions, such as does the pressure on the energy grid not become too great? Those questions are justified. As a region, we must think carefully about this. It also provides opportunities. Tennet and Aliander are seriously investing in additional infrastructure which benefits the entire region as well. Pride for this phenomenon predominates. We are globally on the map as a hotspot for data centers. That is not just something. A whole new digital economy has been added, from which we can all benefit." Source: https://investinnhn.com/ More and more companies are opting for the Netherlands because of Brexit. Even now that the United Kingdom has left the European Union, and has entered a transition period, uncertainty about the economic new relation and the now unforeseen effects on international business remains. As such, the Brexit-related work of the Netherlands Foreign Investment Agency (NFIA) and its regional partners is still increasing. 140 Brexit companies have now chosen for our country since the Brexit referendum. 78 of these 140 companies made their decision in 2019. Media companies Discovery and Ridley Scott, credit rating agency AMBest and Life Sciences & Health manufacturer Shionogi were amongst the companies choosing the Netherlands because of Brexit. Together, these 140 companies expect to create more than 4,200 direct jobs and 375 million euros in investments in the first three years.
The 78 companies that opted for the Netherlands because of Brexit are an important part of the 2019 annual results of Invest in Holland. In total of 397 international companies chose to move to or expand in the Netherlands last year. These companies expect to create more than 14,000 direct jobs and invest 4.3 billion euros in the first three years. More companies are looking into a Brexit-related transfer The number of Brexit companies that are focusing on the Netherlands still continues to grow. The NFIA is talking to 425 Brexit companies about a switch or expansion to our country, up to 175 from the beginning of 2019. This includes British companies, but also American and Asian parties that are reconsidering their current European structure due to the uncertainty caused by Brexit. Each of these companies has unique concerns about access to the European Market. This may involve the possible barriers to trade or off specific products or services, administrative barriers or extra procedures, access to international talent for research & development or the loss of European innovation funds. Jeroen Nijland, NFIA Commissioner and Chairman of the Invest in Holland collective: “2020 will be an important year for these companies. Much will depend on the specifics of the future arrangements in the relation between the UK and the EU. The impact of this will vary from sector to sector and the pressure to reach agreements will be high this year. We see that uncertainty is still increasing at many companies. They are waiting to make investment decisions until more is known about the impact of these new economic agreements on their business operations. On the other hand, more and more companies are not waiting. They opt for the certainty and security on the European Market that the Netherlands offers instead. With an English-speaking population, the excellent connections to the UK and the EU by road, boat, train and plane and our strong digital infrastructure, choosing the Netherlands is an attractive alternative.” Keeping access to the European Market from the Netherlands The companies mostly find their origins in the services sector, for example Fintech, IT, and the Media & Advertising industry. They choose our country because of necessary EU permits, access to the European market and the ability to attract European talent. This includes European headquarters, research & development facilities and service centers. Given the nature and activity of these companies, the majority opt for the Randstad near Amsterdam, Rotterdam and Utrecht. Nineteen companies from the Life Sciences & Health sector have opted for the Netherlands due to Brexit. The arrival of the European Medicines Agency (EMA) is often part of the reason for choosing our country. NFIA Commissioner Nijland: “Although Brexit is difficult to predict in the short term, we know for sure that this will have major consequences in the long term. Brexit is and remains an undesirable development, certainly for the Netherlands. But with the continuing uncertainty, it is understandable that internationally operating companies are looking for alternatives on the European Market that offer them prospects in terms of goods, services, personnel and capital. The Netherlands offers a stable port in turbulent times for international economy.” About the NFIA The Netherlands Foreign Investment Agency (NFIA) is a government agency of the Ministry of Economic Affairs & Climate Policy (EZK). In addition to the NFIA, the Invest in Holland network consists of: NOM, East NL, Noord-Holland Noord, amsterdam inbusiness, InnovationQuarter, The Hague Business Agency, Rotterdam Partners, Invest Utrecht, Brabant Development Agency, Invest in Zeeland, LIOF, Horizon! and the Holland International Distribution Council. For questions and requests regarding this press release, please contact Michiel Bakhuizen, spokesperson NFIA, via + 31 6 1137 6128 or michiel@nfia.nl Amsterdam – With the rapid growth of data and the ever growing dependence on IT, having a solid digital infrastructure is increasingly important; never before were IT trends and business changes so closely linked as they are now. This offers enormous opportunities, however also challenges in terms of sustainability, energy, education, legislation and security. No wonder that 1000+ visitors – from connectivity, cloud and data center experts to developers, investors and policy officers – gathered in Amsterdam yesterday to kickstart the year at KickStart Europe 2020. During this conference, the annual European Outlook report was presented as well. All-out tech war What’s ahead for Europe’s digital infrastructure industry? The KickStart Europe conference published its annual European Outlook report during a day full of Strategy and Networking sessions. One of the developments is the economic uncertainty coming from overseas. Not necessarily from the looming Brexit, but more from the ongoing global trade wars between global economic superpowers. Since Europe is highly dependent on foreign technology, many EU countries want to reduce that dependence and provide more European alternatives. Recent cases show that trade wars are more and more intertwining with cyber wars, reaching an overarching tech-war. The European answer aims towards the support for open source initiatives and a more conservative approach towards the cloud in the public sector. Sustainability Another global trend, identified in the 2020 European Outlook report, is sustainability. specially in Europe, energy efficiency and green power will be a key priority for the digital infrastructure industry. “In the digital world, telcos and data centers are major energy consumers,” says Peter Vermeulen, Analyst at Pb7 and research partner of the Outlook Report. “This means that they both will need to continuously invest in energy efficiency and green power – if they haven’t done so already.” Where next Mitul Patel, Associate Director at CBRE and the second research partner of the report, anticipates that the total capacity of data centers in the so-called FLAP-markets (Frankfurt, London, Amsterdam, Paris) will increase with 15% in 2020. Cloud is again the dominant driver behind the data center growth; which represented 80% of the growth in 2019. As discussed during his keynote presentation at the conference, Mitul Patel states: “the question ‘where next’ is more important than ever; getting ahead of the competition in increasingly popular growth markets can prove extremely fruitful”. At the conference, visitors were able to meet and discuss what’s ahead in 2020. Prepared for the coming year and ready for more insights at the next KickStart Europe conference on January 25 and 26 2021! Report available All visitors of the KickStart Europe Conference have received the Outlook 2020 report at the conference day. The report, with key insights into the data center and digital infrastructure industry, is freely accessible via www.kickstartconf.eu/outlook2020. About KickStart Europe KickStart Europe is the Annual Strategy & Networking conference on trends and investments in tech and digital infrastructure. By bringing together an array of industry professionals at the start of the year, KickStart Europe helps to explore the emerging trends and technology shaping the digital industry and digital infrastructure of cloud, connectivity and data centers. The conference has the aim to foster collaboration, the exchange of ideas and explore opportunities and threats, right at the start of the year. By the industry, for the industry. See www.kickstartconf.eu or contact info@kickstartconf.eu Tomorrow, the third edition of the Kickstart Europe Conference takes place in Amsterdam. At the now largest European digital infrastructure conference at the beginning of the year, the international top of the data center, cloud and connectivity industry meets on January 28th to discuss trends and forecasts and make strategic plans for the new year. A year that will be largely devoted to sustainability and the facilitation of continued digital growth. Expert speakers from CBRE, CyrusOne, EdgeConneX, AMS-IX, Amazon Web Services, Equinix, Iron Mountain, Yondr, Quanza, Interxion, QTS and Gartner will discuss the growing challenges of the digital industry with more than 1,000 industry leaders. In addition, they share their predictions for 2020 with the audience.
Digitization and energy transition main priorities Last November, the European Parliament formally recognized the climate crisis, and the newly installed European Commission set a goal to become a climate neutral continent by 2050. Societies are also increasingly digital dependent with Europe’s digital infrastructure on track to double in size in the next five years. As a result, Europe’s digital industry will be under closer scrutiny. How will the digital economy facilitate this growth, while also meeting green standards? Digital industry leaders will try to find the answers at the third edition of the Strategy & Networking conference KickStart Europe. European collaboration KickStart Europe is honored by the visit of Norway's Digitization Secretary of State, Paul Chaffey. He is one of the key players responsible for Norway's national data center strategy and will participate in a debate at Kickstart Europe on investments in data centers in Scandinavian countries. Secretary of State, Mr. Chaffey: "My goal is to build bridges and encourage cross-border cooperation in order to improve the sustainability of the European data center industry and thereby strengthen the European digital economy." Stijn Grove, initiator of the Kickstart Europe Conference and director of Digital Gateway to Europe, strongly agrees: “The pace at which the digital economy is growing is incredible, and the importance of a solid digital infrastructure is becoming increasingly important. IDC predicts that by 2021, more than 50% of global GDP will come from the digital economy. This offers enormous opportunities, but certainly also challenges in the areas of sustainability, power networks, education, legislation and safety. The Kickstart Europe conference brings all parties together and offers the opportunity to look together at these challenges, learn from each other and find solutions. Only then we will be able to facilitate growth.” KickStart Europe 2020 takes place on January 27 (Welcome reception) and January 28 (Conference day) at RAI Amsterdam. For more information, visit www.kickstartconf.eu As we are heading towards the end of 2019, we can carefully start making predictions for 2020. What are the growth expectations for the data center, connectivity and cloud industries, as well as the digital economy as a whole? What are the main challenges that we face, and are they different from last year? Stijn Grove, Director of the Dutch Data Center Association and initiator of KickStart Europe 2020, shares his predictions in an exclusive interview. Why is KickStart Europe such an important industry event for the European digital economy?
To move past these challenges and make progress, we need an international platform where C-level executives can share their expertise and where they can debate with each other on a high-level. This is why we’re organizing KickStart Europe for the third time in 2020 – to have an international strategy and networking conference in Amsterdam, a location easily accessible to most. KickStart Europe 2020 Conference is organized by the industry, for the industry. It’s purposefully held at the start of the year so all key parties can get together, meet in person and gain insights for the upcoming year. The conference aims to bring finance and investment parties together with the digital infrastructure industry with, of course, the ultimate goal to further grow the digital economy. What developments are inhibiting growth today and how do you see innovation or other solutions adapting to solve that problem? The pace of growth for the digital economy is incredible. IDC predicts that by 2021 more than 50% of global GDP will come from the digital economy. Indeed, European digital infrastructure is on
Challenges include issues in the areas of infrastructure, education, sustainability, legislation, and safety. For example, power grids are not growing fast enough to keep up with technological developments, so we need different processes and solutions. We need to review the way we educate the future workforce, putting more emphasis on the quality and promotion of technical degrees.This is essential to meet the growing demand for data center designers, builders, engineers and technicians. Furthermore, we need to push sustainability innovations in energy efficiency and residual heat reuse if we want the energy transition to succeed. Finally, we need better defined policies to ensure privacy, data protection and cyber security. In the end, it’s about the combination of multiple innovations, collaborations and solutions that will make real impact. What are some new developments and initiatives that are exciting for the industry in 2020? The data center industry is dynamic and ever changing, 2020 will be no different. What we see on a European level is that all policies are increasingly centered around sustainability. This also affects the digital industry in the sense that we must be one step ahead in terms of energy efficiency and circularity. Sustainability must become part of our DNA, it’s the only way ahead. Furthermore, we need to be more actively involved in local communities and initiatives. Data centers, for example, are increasingly part of the city in terms of space and power. To ensure future growth, it is important to invest in sustainable relations with local governments, companies and even inhabitants.
Finally, we see a shift in the industry itself as well. “Colocation is dead” seems to be too much of an overstatement. However, we do see that there is an increasing demand for data centers that offer additional services such as cloud access and connectivity and security services. For data centers to remain successful, they will need to adapt to this demand depending on the specific wishes of their customers. For regional data centers, we see an important role when it comes to the growing demand for edge services. With IoT and 5G emerging, data centers and applications need to be even closer together and here lies an enormous opportunity for data centers that are located outside the data hubs. Together with the international data centers, they are the key to further growth of the digital economy. *** Do you want to stay a step ahead and give your new year a KickStart? Register NOW for the KickStart Europe 2020 Conference via www.kickstartconf.eu and meet us and 800+ C-level industry leaders on January 27 & 28 in the Amsterdam RAI for Strategy & Networking sessions. About Stijn Grove
Stijn Grove is the Managing Director of the Dutch Data Center Association (DDA), the the national trade association for Data Centers in the Netherlands. He also heads the Digital Gateway to Europe organisation to promote the Netherlands as the international digital hub. Next to his work for the DDA and Digital Gateway to Europe Stijn is the initiator of the KickStart Europe Conference, the meeting platform for the data center, cloud and connectivity industry in Europe and beyond. Stijn Grove has previously worked for UUNET, Verizon, Samsung Telecom, Colt and EvoSwitch in Senior Management roles. He is an avid industry blogger, columnist and event speaker. In July, two municipalities within the Amsterdam Metropolitan Area (AMA) announced a temporary pause in issuing new permits for new data center projects in their regions. Both municipalities recognise the importance of data centers of our society and economy. Since the announcement, there has been an ongoing positive and constructive dialogue between trade association Dutch Data Center Association (DDA) and governmental parties on both a regional and national level. An action plan is expected to be finalized before the end of this year. The constructive setting of this dialogue has shown its worth as governments and industry have agreed upon a durable collaboration to establish a strategy for sustainable growth of data centers in Amsterdam and beyond. Next stepsMr. Stan Kaatee, Director of the Ministry of Economic Affairs, confirms the above in a letter of intent which was issued mid-September. The broad scope of the letter is as follows:
National Data Center TableTo further shape the collaboration, the DDA recently organized the first National Data Center Table. Attendants included the DDA, several municipalities, provinces, ministries and various industry parties. The aim of the Table was to create a joint vision of the future, strategy and associated work process with regard to the sustainable growth of data centers. The Table was found to be fruitful and further working groups will be organized to form both a short- and long-term strategy. Opportunities for other regionsMeanwhile, several other regions in the Netherlands have stepped forward, welcoming data centers to establish their facilities in their regions. For example, Rotterdam and The Hague presented a plan including suitable locations, emphasizing the potential of this new data center hub. Stijn Grove, Managing Director of the DDA, encourages the development of multiple data center clusters in the Netherlands: “We live in a digital world in which the internet has become a basic need for our society and economy. Everything that happens online comes from data centers. These data centers have become the new foundation that we grow on, and its services are indispensable for the daily practices of individuals, companies and governments. In addition, digital components are a necessary tool in the solutions for all the major societal challenges we face. Indeed, interruption of the growth of data centers and thus digital services, has incredible and irreversible societal and financial impact.” Grove continues: “We are happy that we are on track in finding a solution for short term growth of the existing Amsterdam clusters. Yet, in the long run we need new, additional data center clusters. Therefore, we are happy that many other regions in the Netherlands are interested to take this role. New data center clusters will also provide increased resilience. Digitization will not stop and structural investments in digital infrastructures will need to continue in various places in the Netherlands. However, it is also important to realize that the formation of a new data center cluster does not happen overnight; it takes time. Almost 100 companies have opted for the Netherlands since Brexit referendumDue to the ongoing uncertainty in the United Kingdom, the Netherlands is becoming increasingly popular as a destination for Brexit-impacted companies. To date, almost 100 companies have opted for the Netherlands and some 325 companies are interested in our country due to the uncertain position of the UK in the European Union. That is being made known today by the Netherlands Foreign Investment Agency (NFIA), the organization that attracts foreign companies to the Netherlands on behalf of the Dutch government. The NFIA expects that the Brexit results will grow further in the coming months. Jeroen Nijland, NFIA Commissioner: “It is clear that the Netherlands regrets the intended departure of the British from the European Union. And it is clear that Brexit undeniably has economic implications for international business, because they do business everywhere in Europe. The ongoing growing uncertainty in the United Kingdom, and the increasingly clearer possibility of a no deal, is causing major economic unrest for these companies. That is why more and more companies are orienting themselves in the Netherlands as a potential new base in the European market.” First wave of companies In relation to Brexit, the Netherlands is particularly attractive for companies in the financial sector, IT, the media and advertising industry and life sciences and health. The almost 100 companies that have already opted for the Netherlands mostly have urgent reasons, for example because of a banking license or broadcasting rights to remain active in the EU. For example, companies such as Bloomberg, AMBest, MarketAxess, Discovery, Norinchukin and UK P&I chose our country. Nevertheless, many companies are awaiting clarity about how Brexit will finally take shape and what that means for, for example, the logistics chain or the free movement of people. Access to the EU is paramount The increased interest in the Netherlands is not only coming from British companies. Companies from North America, Asia and Australia are now orienting themselves differently on the possibilities of Europe in light of Brexit. Companies are revising their strategy because of the necessary access to the EU. The NFIA sees that the Netherlands is a compelling choice in that respect. With our strong logistics facilities, English-speaking population and digital infrastructure, we can ensure that businesses can continue to do business in the European market. Companies need this certainty, for example to be able to attract talent, to reach customers across borders on time and to source European innovation funds. NFIA Commissioner Nijland: “The Netherlands is an attractive country for Brexit-impacted companies. But we are not the only country that these Brexit companies are looking at. We are competing with countries such as France, Ireland, Germany and Belgium. Our experience shows that when a Brexit deal gets further out of sight, and the chance of a no deal increases, more companies contact us. Brexit remains bad news for the Netherlands, but with Brexit more companies are going to choose our country in the coming years.” Source: www.investinholland.com Following the announcement on a temporary pause of new data center construction permits in the municipalities of Amsterdam and Haarlemmermeer, the Dutch Data Center Association (DDA) is invited to contribute to the development of the new policy. This new framework is expected to be defined at the end of 2019. The temporary halt does not have any impact on data center projects that are already ongoing. In this statement we further elaborate on the current status and the right way forward. On July 12, 2019, the municipalities of Amsterdam and Haarlemmermeer took the preparatory decision to temporarily halt the construction of data centers in their municipalities, due to the pressure of the data center industry on the power infrastructure and urban planning. The DDA stated in an earlier press release that this rigorous decision of the two municipalities came very sudden, as the industry is already very cooperative when it comes to sustainability, energy efficiency and the use of green energy. Together with the Dutch government, concrete plans have been made to secure the future of the Dutch datacenter industry, a very important sector for the Dutch digital economy. The decision of these two municipalities is at odds with the ambitions of the current government to become Europe’s digital leader, according to the trade association. The impact of the announcement The announcement raises many questions regarding the direct impact and scope of the preparatory decision. First of all: it has no impact on permits and projects related to data centers in the Amsterdam municipality that are currently ongoing or pending. Furthermore, new projects that are in line with the new policy, where data centers contribute with residual heat and have taken other energy saving and energy efficiency measures, will still be taken into consideration. Moreover, this temporary halt is not a national one: it only applies to two municipalities: the city of Amsterdam and the Haarlemmermeer area, which includes Hoofddorp and Schiphol. Other regions within the Amsterdam Metropolitan Area (MRA), such as Haarlem, Almere, Aalsmeer and Diemen are not affected, nor is the rest of the Netherlands. The announced halt of construction permits is for a period of one year, until July 2020. The new requirements are expected to be finalized in December 2019, which means there will already be clarity about the way forward in the coming six months. Energy infrastructure Having energy consumption as one of the important factors of costs, data centers always had a big incentive to reduce energy consumption and be as efficient as possible. Through economies of scale, data centers have reduced the energy footprint of their operations, making them more efficient than separate on-premise data centers. However, it cannot be denied that datacenters do consume a lot of energy, and put pressure on energy infrastructure that was never designed for these concentrations. As data centers grow together in clusters, pressure on the power infrastructure grows in all hubs around the world. European datacenter locations in Germany, Ireland, Denmark, United Kingdom and France also experience pressure on their power consumption and infrastructure. The Dutch government, together with the industry, have decided to tackle these issues before they grow bigger; by working together on a National Data Center Strategy and secure the future of the industry. The trade association is already looking at the possibilities of reducing the pressure on the Amsterdam region by moving to other potential locations; a gradual process that requires coordination. This National Data Center Strategy structures the migration towards the areas around Amsterdam (close by, within 30 km), which is clearly communicated in a concrete route map. The decision of the Amsterdam and Haarlemmermeer municipalities contradicts with these plans. The right way forward The DDA will be closely involved in the process of drafting up the new regulations: both municipalities have invited the DDA to contribute ideas on behalf of the data center sector on the elaboration of the new policy, which should be finalized by the end of 2019. The objective of the dialogue is a realistic assessment of the location of data centers in Amsterdam and the surrounding area, in the interest of the economy and sustainable development of the city, the digital society and the positions of the Amsterdam data center hub . The assessment will include the necessary aspects such as good spatial integration of data centers, the requirements for sustainability, choice for development areas in relation to availability of energy, the use of residual heat, efficient use of energy and agreements on energy performance. The DDA responds positively to the invitation from the municipalities. It does, however, state that it has doubts about the non-constructive manner in which policies are currently being made in contrast to the measures that the sector has been taking for years. “As a sector, we have specifically encouraged the regional governments to take serious action upon the use of residual heat and it comes down to waiting for the government in almost all challenging residual heat projects. In times when we can accelerate, a restrictive government measure like this is counterproductive and these projects are negatively affected by it. ”The trade association therefore asks the municipalities to be more proactive and supportive with the initiatives of the sector. New owner DWS to combine the two companies into national leader
DWS today announced plans to merge The Datacenter Group (TDCG) and NLDC to become the largest independent datacenter provider in the Netherlands. Global asset manager DWS’s infrastructure business announced its acquisition of NLDC from KPN earlier this year and has now also taken a majority stake in TDCG. Both acquisitions are on behalf of DWS’ European infrastructure fund. The merger will create a leading national player in the Dutch market, serving corporates, government, cloud and IT-providers and enterprises through a substantial footprint in Amsterdam, but also via growing regional hubs. DWS is a long-term investor in infrastructure and has the resources to accelerate the merged company’s national and international growth ambitions. The merger will be completed in the coming months, and employees and clients will be kept closely updated on developments. The acquisition of NLDC by DWS’ infrastructure investment business was announced in May and should be completed during the third quarter of 2019. “We are delighted to make these investments in TDCG and NLDC. Both companies have high-quality and geographically diverse assets, providing an attractive co-location offering. The new combination is excellently positioned to support clients. We look forward to working with all employees of the new company to enable its further growth,” said Hamish Mackenzie, Head of Infrastructure at DWS. The merger between NLDC and TDCG will create substantial benefits and opportunities for employees, customers and suppliers. Ten datacenters, 65 megawatts Together, TDCG and NLDC have a total of 10 datacenters in Amsterdam, Rotterdam, Delft, Utrecht, Groningen and Eindhoven. These locations cover nearly 50,000 m² and have 65 MW of power capacity. Siemon van den Berg of TDCG said: “As a datacenter provider in this competitive market, offering continuity to our clients is key. Having such a solid partner as DWS will greatly enhance our ability to safeguard this.” Claartje Mangert, managing director of NLDC, said: “The two companies know the world of the colocation, connectivity as well as private and public cloud well. We deliver co-location directly to end-users such as hospitals, schools, municipalities, ministries and companies and indirect via system integrators. This positions our companies well to offer independent advice about the best route to the hybrid cloud.” The majority interest in TDCG was acquired by funds managed by DWS’ infrastructure investment business. Siemon van den Berg, founder and CEO of TDCG, will retain a minority stake in the merged company and will continue to support its strategic development as a member of the supervisory board. The other founder of TDCG, Ali Niknam, has sold his shares to DWS. No financial details of the acquisition are disclosed. Further expansion Eemshaven, new data center being built in Hollands Kroon (Agriport) Google is growing its data center presence in the Netherlands with an expansion of its Eemshaven site and a new data center in Agriport, representing a total investment of €1 billion. This brings Google’s total data centre investment in the Netherlands to €2.5 billion. The construction phase of the new data centers will provide work for more than 1,000 people on average per day, per site. The expansion in Eemshaven comes on top of the expansion that was already announced in 2018, bringing total employment for the Eemshaven site to 350 people in 2020. The Agriport site will employ approximately 125 people once operational. Netherlands attractive for expansion In the search for suitable space to further expand the European data center network, Google has once again opted for the Netherlands. Meeting the demands for services such as Search and YouTube, today’s announcement is the first time Google has invested in Europe in two separate sites in the same country. Eric Wiebes, Minister of Economic Affairs and Climate welcomes the investment decision, “This cabinet has the ambition to become the digital leader in Europe. That is why we are making efforts to ensure that investments in high-quality innovative IT projects are made in the Netherlands. This investment means a boost for employment in the region. I am also happy that Google is purchasing 100% renewable energy for these data centers.” Local community Joe Kava (Vice President of Google Global Data Centers): ‘The Netherlands is a digital frontrunner. In addition, the Netherlands has a first-class digital infrastructure, ample sustainable energy sources and qualified staff available. Equally important is the support of the local community. We are grateful for the support we receive both in Het Hogeland and in Hollands Kroon. All these factors together make it attractive for us to further expand our presence in the Netherlands. ‘ Mayor Rian van Dam of Hollands Kroon: ‘I am proud to be the mayor of a municipality that gives room to developments. With great pleasure we welcome Google in Hollands Kroon’. Employment In March 2018, Google’s Eemshaven data centre announced a new €500 million expansion bringing the total investment in that site to €1.5 billion. With news of the further investment in the Agriport facility and the expansion of its data centre in Eemshaven, Google remains committed to the Netherlands. The construction phase of the new data centers will provide work for more than 1,000 people on average per day, per site. Both buildings are expected to be operational in 2020 with Eemshaven employing 350 people in total, and Agriport approximately 125. 100% renewable energy Google is committed to matching the energy use of the datacenter with 100% renewable energy. Since 2017 Google matches our energy consumption at all our facilities with a 1:1 renewable energy purchase. This means that Google has enough electricity from wind turbines and solar panels to cover energy consumption. In the Netherlands, Google has a total of four PPAs (power purchase agreements) generating roughly 130 MW of power. Source: Google The Dutch Data Center Association presents its annual market report today – Amsterdam passes London as the largest European hub
With Amsterdam, the Netherlands has the largest data center hub in Europe within its borders. The Amsterdam market grew by no less than 20% in MW last year, and with that, Amsterdam surpasses former number one London. This is made clear from the report that trade association Dutch Data Center Association (DDA) presented today in the Systemec data center, where Ger Koopmans, deputy Governor of the King in Limburg, received the first version of the State of the Dutch Data Centers 2019 report. This year’s research into the Dutch data center market was conducted for the fifth time. Also in 2018 the market grew again with double digits; the total power increased nationwide with 18%. The 189 Dutch colocation data centers now cover 369,000 m2 of data floor. The center of gravity is the Amsterdam region: 72% of all data centers can be found here. Over the past 8 years, this region has experienced an average annual growth of no less than 18.5% in take-up. “Compared to the other European leaders London, Frankfurt and Paris, Amsterdam has a unique combination of colocation and hyperscale data centers,” says Stijn Grove, managing director of the DDA. He is therefore not surprised by the number one position: “The Netherlands, and Amsterdam in particular, is seen as the Digital Gateway to Europe due to its excellent connectivity and full developed ecosystem. With years of double-digit growth, it was only a matter of time that Amsterdam would overtake the other hubs.” DIGITAL AWARENESS IS NEAR The State of the Dutch Data Centers report was presented today on National Data Center Day, which the DDA organized for the fifth time. “We are becoming more and more data-dependent every day,” says Stijn Grove, “but most people are not aware of what is happening behind the screens.” On this National Data Center Day, many DDA-data centers open their doors to the public, giving them a unique look behind the scenes of the Internet. One of the participating data centers is Systemec in Venlo. “We notice that awareness of data in society is increasing,” says Jos Derkx, General Manager at Systemec. “Traditional companies are increasingly engaged with their digital transformation, and can therefore go to data centers everywhere in the Netherlands to have their business-critical infrastructure housed professionally.” The report shows that the demand for data center services is increasing everywhere: nationwide, the total data center data floor grew with 20%. Awareness of the importance of the digital world is therefore becoming increasingly important: our economy has now become a digital economy. Developments such as AI, 5G and Quantum Computing will provide much more data than we have seen so far. These technical innovations are only possible if there is a strong, efficient and safe digital foundation. Data centers are an essential part of this and their important contribution to the digital world is becoming increasingly visible. GROWING IN THE RIGHT DIRECTION In addition to opportunities, the growth of the market also brings challenges, for example in the field of energy distribution and the availability of green energy. The power consumption of data centers is a hot topic, and data centers have taken actions in recent years by investing in sustainable energy solutions and the use of green energy: 80% of DDA participants use exclusively green power. Another important energy topic is residual heat from data centers. The DDA is actively involved in the acceleration of residual heat projects in which data centers play a role. Around 46% of DDA members re-use residual heat, 13% is involved in the roll-out of a heat network, and over 33% of DDA members are making plans to start re-using the heat in the near future. So it is definitely a hot topic for Dutch data centers. However, there is work to be done according to Stijn Grove. “For data centers as well as for network managers, energy suppliers and regional governments, now is the time to start re-using residual heat from data centers, and contribute to the energy transition. As the largest data center hub in Europe, it is time for the Netherlands to take the lead in this as well. ” THE REPORT IS FREELY ACCESSIBLE FOR DOWNLOAD HERE. Data centers open their doors on 11 June during National Data Center Day The Dutch are avid visitors to data centers; we visit them thousands of times a day per person. Virtual visits, to be precise, since most of them have never really been inside. On Tuesday 11 June, everyone has the chance to take a look at a data center; literally a look behind the screens of the internet. During the fifth edition of the National Data Center Day, organized by the Dutch Data Center Association (DDA), various data centers open their doors for the general public. Data centers house many digital applications and thus form the foundation for our digital economy and our Internet. In these buildings full of servers, many videos and other files are stored, important software runs and data is exchanged between different networks. Data centers therefore play a fundamental role in our society and digital economy. Yet many people know little about how the internet actually works and how data centers ensure that they can always use online services. The National Data Center Day offers the chance to see this with your own eyes. Presentation of the State of the Dutch Data Centers 2019 The DDA will also present its annual "State of the Dutch Data Center 2019" report on National Data Center Day 2019. This report quantifies the most important developments in the Dutch data center industry and also explains the importance of data centers for the digital economy. A quarter of our GDP comes from this growing digital industry, and the data center sector now creates around 12,500 jobs. The presentation of the "State of the Dutch Data Centers 2019" report takes place at DDA participant Systemec in Venlo. Deputy Governor of the King in Limburg, mr. Koopmans will receive the first version of the report from Stijn Grove, director of the DDA and Jos Derkx, general manager at Systemec. With this handover, the start signal for the National Data Center Day 2019 is given. Participating data centers: where can I go?A large number of data centers participates with the National Data Center Day. If you live in the Gelderland province, you can visit BIT and ITB2. The Data Center Group opens its doors in Delft, and you can visit the Serverius data centers in Meppel and Dronten. The Previder data center can be found in Hengelo (Overijssel) and the Engie data center is close to Maastricht-Airport. North-Brabanders can go to Interconnect and Dataplace, the latter of which also opens the doors of their data centers in Rotterdam, Utrecht and Arnhem. In Amsterdam you can go to the maincubes data center in Schiphol-Rijk, or to Digital Realty on Science Park. In the province of Leeuwarden, Datacenter Fryslan can be visited, and in Groningen Datacenter Groningen and Bytesnet open their doors. The location of Bytesnet in Rotterdam can also be visited on June 11, just like the Rotterdam SmartDC. For more information, registration and the current list of participating data centers, go to www.dutchdatacenters.nl/dc-dag The Annual Digital Infrastructure Investment, Strategy & Networking Conference, held on January 27 & 28 in RAI Amsterdam focuses on the Data Center, Cloud, Connectivity ànd Edge ecosystems. Digital Infrastructure has momentum; business is flourishing, demand for data and connectivity is growing and exciting technologies such as 5G, AI and ML are on the brink of becoming mainstream. Which places digital infrastructure for a dilemma; how to separate business from buzz? The KickStart Europe conference right at the start of the year provides the latest trends and connections to the right investments in the European digital infrastructure. The summit gives the expected 1.000 attendees a great KickStart of 2020. The third edition of the Strategy & Networking Conference KickStart Europe will return to Amsterdam and to the RAI Convention Center at the beginning of 2020. Right in the heart of Europe, Amsterdam is easy to travel to, and the RAI Convention Center provides the summit with room to grow: around 1.000 C-level executives from over 20+ countries will attend the strategy and networking summit focused on European trends and investments in data centers, connectivity networks, cloud and the role edge plays in the ‘new’ colocation. Partners of KickStart Europe 2020 The KickStart Europe organization is very proud to already announce that before the official start of the campaign, 15 of our last-year partners will rejoin us at the 2020-conference. Founding partners CBRE, NIBC, Unica, Vertiv, Caransa, ICTroom, AC Niellsen and AgriportA7-Hollands Kroon-Investment Agency NHN join us again next year. Other partners from the industry that return in 2020 are RoviSys, Stulz, Beveco, maincubes, ABB, Socomec and Elinex. “KickStart Europe is organized by the industry, for the industry. The strong support from these industry leaders is therefore very important for the conference, that thrives on a strong and diverse network. These long-term, strategic partnerships support us in building the perfect meeting place for the industry right at the start of the year”, says Stijn Grove, Managing Director of Digital Gateway to Europe and initiator of KickStart Europe. KickStart Europe 2020 takes place on Monday January 27 (Welcome Reception) and Tuesday January 28 (Conference Day) at RAI Amsterdam. Tickets will be available soon. For more information, or to become a partner of KickStart Europe, see www.kickstartconf.eu or reach out via info@kickstartconf.eu |
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