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by pjc50 461 days ago
So .. why are people trying to build new datacentre space in London rather than somewhere a bit further away and less expensive? Easier to put the datacentre near the power and run some fiber rather than the other way round, surely?

The expense is unpleasant, but the money has to come from somewhere, and the user paying is easier to justify than all the other bill-payers collectively or the taxpayer.

4 comments

> why are people trying to build new datacentre space in London rather than somewhere a bit further away and less expensive?

Most likely some combination of:

    1. A chunk of the customer base (financial sector, hyperscalers etc.) that wants the low latency and who are price insensitive because of their deep pockets.
    2. If peering matters to you, then you're limited to where the IXP is, which is usually only at the major London sites.  LINX, for example, have LINX Wales, but that is not interconnected with LINX London, so you either need to get space in London or pay for fibre capacity back to London.
    3. Fibre coverage outside large conurbations in the UK has traditionally been shit and to varying degrees still is.
    4. The rural areas don't have substations ready-to-go and the NIMBY's come running if you propose building one or anything else in their backyards (see protests about new wind farms).
Almost certainly many more things I've missed, those are just a few off the top of my head.

There are various locations outside of Central London but within the M25 boundary. But YMMV when it comes to being any less expensive. I suspect you will find the Outer London market has "hardened" over the last few years.

Verging into cynical territory, marketing might come into it a little bit. "Telehouse London" sounds cooler in the customer presentation "Telehouse near some village you've never heard of".

The UK has a weird National Grid system whereby the cost of electricity is the same nationwide (except Scotland)

So datacenters build in London as the connection/electricity price is same as building in rural areas and they'd obviously prefer being closer to users in London.

They build datacentres in/near London and also elsewhere in the country.

Here's one example map: https://www.colo-x.com/data-centre-database-map/

Probably because of easier access to qualified workforce.