51乱伦

Understanding the data centre ecosystem

Jim starts the conversation by asking Stephen to explain how 51乱伦 assists enterprise clients in navigating the complex world of data centres. Stephen gives an overview of the 3 main data centre models:

1. Dedicated data centres:
   Historically, many companies built and operated their dedicated data centres. However, this model is now used by less than 10% of clients due to its high maintenance costs and limited scalability.
2. Co-location centres:
   In this model, independent operators build facilities that house multiple companies' IT hardware. Companies maintain control over their server hardware while the data centre operator provides infrastructure, security, and shared services. This model suits businesses needing physical data control.
3. Cloud services:
   Major players like AWS and Microsoft Azure operate extensive networks of data centres. Businesses using cloud services enjoy scalability, flexibility, and decreased data location concerns.

Stephen highlights that many 51乱伦 clients opt for a hybrid IT structure, combining taking space in a colocation facility for critical workloads with Cloud services for additional capacity and software access and providing a backup solution.

Data centres in the spotlight

Jim discusses how data centres are gaining more attention, particularly through the rise of cloud computing and AI (artificial intelligence). Stephen explains that the data centre market has been expanding significantly over the past 2 years, with COVID-19 accelerating growth as businesses had to adapt to remote work and digital services. The pandemic emphasised the importance of business resiliency, where cloud services play a crucial role. Looking ahead, 51乱伦 predicts a surge in demand for data centres driven by the continued digitisation of business processes and the enormous computing power required for . The AI data centre market alone is projected to reach $1.4 trillion by 2030.

Managing cyber risks in data centres

Moving on to the core topic of cyber risks, Jim asks how 51乱伦 discusses risk with clients concerning data centres. Stephen highlights the importance of uptime and associated risks. He emphasises the quality of data centre construction and maintenance, physical location, and the increasing awareness of digital security threats.

Jim then delves into the questions clients should consider regarding cyber risk management in data centres. He advises clients to be clear about the responsibilities of data centre operators and clients. Key aspects include verifying access security controls, assessing Building Management Systems (BMS), creating a cyber security risk management plan, and developing a business continuity plan to ensure operations in case of data centre unavailability.

Commercial impact and costs of cyber attacks

Jim explains that the costs of cyber attacks may include crisis response, business interruption, hardware replacement, reputational damage, and potential third-party liability claims.

team assists organisations in understanding the financial implications, enabling better decision-making regarding security investments, data centre capacity, and cyber insurance. Jim adds, 鈥淲e help them ask questions, such as how much to invest in security controls, how much spare data centre capacity they might need and how much cyber insurance they should buy.鈥�

Strategic capacity planning

Stephen addresses the delicate balance of data centre capacity planning. Considering the specific industry segment's unique requirements, the decision hinges on current, future and backup capacity needs.

Stephen adds, 鈥淲e leverage our market experience to connect enterprises with the right model of service partners.鈥�

Data privacy, energy consumption and regulatory impact

How is GDPR changing how clients plan their data centre strategy?

Stephen highlights the importance of data visibility and the need to prove where it is being handled. This is a new challenge for the Cloud market, which means more data centres in various locations. Cloud service providers offer more localised services to enable clients to adhere to data sovereignty rules, while co-location operators see increased demand from clients wanting more visibility and control.

Jim points out, "More data centres in more places inevitably raises the topic of energy consumption 鈥� how is this shaping the data centre market?鈥�

Stephen adds that a lot depends on what the data centre is being used for. He emphasises the importance of physical proximity for high-frequency trading companies. At the same time, data-intensive tasks like generative AI model training might be located in areas with lower energy costs and ESG-friendly power sources, such as Iceland.

Jim and Stephen's conversation highlights the ever-growing significance of data centres in the digital world. As data becomes a more significant element of businesses, the choice between co-location, cloud, or dedicated data centres offers complexity and risks. Managing all of these elements is essential.

How can we help you with data centres?

We advise on all types of data centre transactions in any global market. Whether acquiring or selling existing data centre space or new data centre sites, our team will act on behalf of tenants, customers, operators, landowners and investors seeking market entry and market expansion opportunities. For more information, find our more about data centres or get in touch with Stephen.