With such stories dominating the headlines, it is of little surprise that the current view of the Technology, Media and Telecoms (TMT) sector is somewhat pessimistic. However, within the midst of all this economic downturn, there are some sub-sectors showing strong growth. One such industry is the data hosting providers. With IP traffic and digital data creation set to quadruple over the next four years, coupled with current legislative requirements, businesses are increasingly turning to data centres to help them store, manage and protect their data. In the current climate, as companies seek to reduce their IT spend, data centres are thriving on this relatively easy option to reduce costs.
Recession or not, the growth of the data centre industry is more or less guaranteed for the next few years; demand currently outpaces supply in Europe at 6 to 1 and BroadGroup predicts data centre floor space is set to grow by a staggering 35% each year to 2012.
BDO already act for a number of clients in this sector - whilst some industries will continue to struggle through the current downturn, the data centre industry is just one of many areas where we at BDO can leverage our sector knowledge and expertise.
Where can BDO provide value:
One of the major areas where BDO has demonstrated value is by helping data centre’s to navigate the capital allowance maze. Data centres, by their nature, incur heavy capital expenditure and by maximising claims for capital allowances - which have changed significantly since 2008 – we can potentially save data centre businesses six-to-seven figure tax bills.
For more information on our expertise and sector knowledge in this area, please email Simon Brooker or telephone 0118 9254488.