Lycos Europe To Shutter Hosting Operation

Lycos Europe said last week that it would shut down its web hosting business as part of a larger unwinding of its European network of Internet operations. Lycos Europe said it would seek a buyer for its domain name and e-commerce divisions, as well as its Danish web portal. 

But there are apparently no buyers interested in the company’s money-losing hosting operations, which has 20 employees and offers shared hosting and virtual private servers. The company didn’t provide a current tally on the scope of its hosting business. But as of late 2006, Lycos Europe hosted more than 200,000 web sites, placing it among the top 10 web hosts in Europe, according to Netcraft. 

A Closer Look at Google’s European Data Centers

An exterior view of the Google data center near Groningen in the Netherlands. (Photo taken by Erwin Boogert)

Google’s purchase of land in Austria for a possible data center highlights the global nature of the search giant’s infrastructure. Google’s existing European footprint includes several data centers in the Netherlands and one in Belgium, as well as peering centers in major European bandwidth hubs.

Erwin Boogert recently posted new photos of Google’s facility near Groningen in the Netherlands. Erwin originally shot pictures of the facility in 2004, but revisited in late October for a second look. Erwin is an IT journalist who has also put together a Google Maps mashup with more information about Google’s operations in the Netherlands and Belgium.

Growth Seen for UK Data Center Industry

Will UK data center operators increase their investment in new data center construction in 2009? That’s what they said at the DatacenterDynamicsLondon:08 event Nov. 11-12.

According to research data compiled at the event, investment in new data center investment by UK companies will reach £850 million for 2008-09 ($1.28 billion), an increase of £50 million ($74 million) on the previous year. Investment in retrofitting of data centers is estimated to be £400 million ($600 million) in the same period.

The optimism about new construction in the UK is a departure from current experience in the US, where even veteran data center developers face major challenges raising funds for new construction. The focus on new construction rather than retrofits, which tend to be far more affordable, also runs counter to recent trends in the US.

This finding may be explained by the internal trends in London, the dominant UK data center market, where power shortages and space constraints have been major challenges. Almost one third of the survey respondents said they were considering moving their data center out of a city location.  

Interxion Opens Fifth Amsterdam Data Center

Amsterdam is one of the world’s busiest Internet traffic hubs, where major European networks intersect. It has also been a lucrative market for Interxion, which has just opened its fifth data center in Amsterdam. 

The 13,000 square foot first phase of the  facility is 70 percent sold already, according to Interxion, which is accelerating its timetable for the 12,000 square foot second phase to accommodate demand. The company expects the second phase to be completed in May 2009.

“In Interxion’s ten-year history of providing high-level infrastructure in the Amsterdam area, we have never experienced such strong demand for a new facility,” said Michel van den Assem, Managing Director, Interxion Netherlands.

Worker Killed in Accident at UK Data Center Site

One construction worker was killed and another seriously injured in an explosion Wednesday at a data center construction site north of London. The blast at the Hertfordshire Data Centre on the Mundells Industrial Estate was described by fire officials as a “large scale incident,” which investigators say was caused by a cylinder of argonite, an inert gas used in data center fire suppression systems.

The body of one worker was found during a search of the building. One worker is reported in critical condition at Queen Elizabeth 2 Hospital, where another is in serious condition. Five other workers were treated for lesser injuries and released. 

Jon Smith, Group Commander of Hertfordshire Fire and Rescue, told the Daily Mail that the explosion caused “widespread damage” to the building. ”The external structure is intact, but 50 per cent of the internal structure has been affected,” Smith said. “Walls are down, floors are up and walls knocked out. These cylinders have become missiles and fired around randomly.”

CBRE Sees Rebound in London Market

CB Richard Ellis (CBRE) raised some eyebrows in July when it reported that data center deals slowed in London in the first quarter of 2008, as demand from financial services companies slackened. The report fueled concerns that the demand was ebbing in London, a major financial hub and one of the world’s busiest data center markets. Curiously, leading data center operators Equinix (EQIX) and Digital Realty Trust (DLR) reported no evidence of any changes in the London market.

It’s an academic question now, according to CBRE’s latest report on data center demand in Europe, which said that demand is back to its usual robust level. “In London this quarter, we have seen take-up levels return, both in the CNH and shell markets,” said Andrew Jay, Head of Technology Practice Group at CB Richard Ellis.” The continued growth in the CNH (carrier-neutral hotel) market is illustrative of underlying demand in the data centre market.”   

Total market take-up for Q2 was 45,520 square meters, an increase on the previous quarter of 144 per cent and the third-highest leasing level since monitoring the five European tier 1 cities began in 1999. Shell space accounted for 27,410 square meters (60 per cent) while CNH leasing was 16,990 square meters (37 per cent).

Data Centers Are the Least of Iceland’s Worries

Officials in Iceland have been actively seeking to establish the country as a major hub for data centers, citing its abundant supply of cheap geothermal power. Economic development staff have attended several recent industry events to educate data center end users about Iceland’s advantages. Microsoft and Cisco are reported to have visited Iceland to size up its potential to support a major data center.

But Iceland now appears to be effectively insolvent, with its major banks closed and customers unable to access their accounts. As the country’s currency plunges in value, the crisis is spreading beyond its shores. Iceland’s biggest banks have racked up foreign debts equivalent to as much as 12 times the size of the economy.

The British government has been forced to guarantee all customer deposits by UK citizens at the Icelandic online bank Icesave. “The Icelandic government, believe it or not, have told me yesterday they have no intention of honoring their obligations here,”‘ Darling told the BBC. The UK government may take further action to protect at least 20 British municipalities with tens of millions of pounds on deposit in the failed Icelandic banks. The government of Iceland is reportedly seeking a loan from Russia.

Interxion Raises $190M for Data Center Growth

European data center provider Interxion said this week that it has obtained financing of 135 million Euros ($190 million in US dollars) to fund the build-out of its data center network. Interxion, which is based in the Netherlands, operates 23 carrier-neutral data centres located in 13 cities across 11 European countries.

“The new credit facility is a vote of confidence in the past performance and future prospects of Interxion and will allow us to meet growing customer demands in all of our markets,” said Josh Joshi, Interxion CFO. The revolving credit facility was arranged by Fortis Bank with participation by Coöperatieve Rabobank Regio Schiphol and ING Bank. 

Few Details on London Trading Outage

Calculating the cost of downtime is an inexact science. But it’s clear that yesterday’s lengthy trading outage on the London Stock Exchange was a significant financial event unto itself, with losses heasured in missed commissions and the opportunity cost borne by traders who were unable to react to the U.S. bailout of Fannie Mae and Freddie Mac and subsequent Wall Street rally.

There are still few technical details about the outage, according to the Financial Times:

The LSE said the outage - which it called a “Black Swan event” - was caused by problems with the electronic connections that allow traders to place buy and sell orders on the exchange’s trading platform. The LSE was unable to explain the source of the problem but said it had not been caused by a surge in trading volumes. The Johannesburg Stock Exchange, which also uses the LSE’s trading platform, was also forced to halt trading.

The BBC noted that the outage could have competitive ramifications for the London Stock Exchange, which is being challenges by rival trading platforms Chi-X and Turquoise. Reaction from traders and analysts in the UK press reflect the unhappiness of trasders with the LSE. “Traders from Europe and the UK were incandescent with frustration in being unable to execute their deals,” commentator David Buik told The Guardian.

Global Crossing Expands in London, Amsterdam

Global Crossing will be expanding its Docklands data center in London.

Global Crossing has announced plans to expand its London facility and to open a new data center in Amsterdam. The expansion is driven by strong demand for data center space in London, which is seeing a data center building boom as providers race to keep pace with client requirements.

Global Crossing (GLBC) said its Docklands data center is nearly at capacity, with 89 percent of the available space sold, and has started Phase II of its build-out at the facility. The company has aready has pre-sold 10 percent of the additional racks. Global Crossing said the new data center in Amsterdam is part of the firm’s plans to continue the expansion of its hosting solutions business in Europe. The Amsterdam facility will be available in early 2009.

Global Crossing also said it has broadened the scope of services offered in its London data center, adding a suite of managed services including monitoring, backup, security, server management and storage solutions, specifically Hitachi Data Systems data storage capabilities.