INTELLIGENT BRANDS // Data Centres
Data Centre Cost Index positive despite a post-pandemic global supply chain crisis
According to Global consultancy Turner and Townsend ’ s latest Data Centre Cost Index , the construction sector is in the midst of an international supply chain crisis as it continues to recover from the impact of COVID-19 . Despite this adversity , 70 % of this year ’ s survey respondents were optimistic that strongerthan-ever demand proves that the data centre industry is recession-proof .
The Index – which is in its fifth year – looked at global markets consisting of 44 locations including Nairobi and Johannesburg in Africa . The findings show that increasing costs in every market due to a year of supply disruption , did not deter data centre demand in most markets . The demand in fact remained relatively steady when compared to other comparable industries .
Wendy Cerutti , Data Centre Lead for Africa , Turner and Townsend , said : “ Market growth for data centres has been exponential over the past five years and the trend towards a totally digitally connected world was accelerated by 18 months of online working and socialising . As the data centre market matures , the future for the industry in Africa and globally looks resoundingly positive .”
Cerutti added : “ Fresh sources of demand and significant market opportunity was found in regions where people are at the steepest part of the digital adoption curve , such as parts of Africa and South America . This is where the digital market is coming of age and the use of Internet enabled devices are soaring .”
The Index showed that the cost per watt remained relatively flat in Johannesburg rising from US $ 6.6 per watt in 2020 to just US $ 6.7 per watt this year . Nairobi was similar rising from US $ 6.9 per watt in 2020 to US $ 7 per watt this year .
“ With less competition – and build costs coming in around a third less than key primary markets – market interest is turning toward developing nations ,” noted Cerutti .
As the climate crisis continues , Turner and Townsend said many data centre leaders were coming forward with climate pledges . The regulatory landscape around net zero was also creating new risks , coupled with growing client and consumer expectations .
“ Showing willingness is important but achieving these goals will be tough for an industry that accounts for one percent of global electricity use ,” said Cerutti .
“ Supporting continued global growth to meet the rising digital demand , while also improving the sector ’ s environmental performance , will take nothing short of a revolution in how we produce and store energy .”
According to the Index , careful planning , investment in green technologies and upskilling of the supply chain must all happen at pace and scale to deliver the necessary infrastructure for a new net zero digital world .
“ It is imperative that we didn ’ t limit data centre growth across the world by ignoring the growing need to tackle carbon emissions released by the sector . It won ’ t be easy but cutting these emissions will take a global , programmatic approach with transparent and published plans ,” said Cerutti . p
AS THE DATA CENTRE MARKET MATURES , THE FUTURE FOR THE INDUSTRY IN AFRICA AND GLOBALLY LOOKS RESOUNDINGLY POSITIVE .
58 INTELLIGENTCIO AFRICA www . intelligentcio . com