In an era where digital connectivity underpins every facet of modern life, Telehouse stands as a pioneer in the data centre industry. With significant operations in London, Paris, and Frankfurt, the company has been instrumental in shaping Europe’s digital landscape since 1989. Telehouse’s journey reflects a steadfast commitment to connectivity, sustainability, and innovation, positioning it at the forefront of the industry’s future.

A legacy of connectivity across Europe

Telehouse’s European journey began in 1990 with the opening of the Telehouse North data centre in London Docklands, marking the introduction of the continent’s first purpose-built colocation data centre. However, the company’s origins trace back to two visionary Japanese engineers based in New York, who foresaw the need for a neutral space where smaller telecoms players could interconnect with larger incumbents on equal terms.

The revolutionary concept of a ‘telecoms house’ – where all players had the same access to interconnection routes – was first realised in New York, followed by London, Paris, and other major hubs. 

“We started in 1989, opening our first data centre in New York to serve as the interconnection point between carriers,” stated Mark Pestridge, Executive Vice President & General Manager of Telehouse Europe. “The success in London set the stage for our expansion into Paris in 1996 and further developments in Frankfurt.”

Telehouse introduced a carrier-neutral model that fostered competition and innovation by allowing multiple service providers to interconnect within a single, neutral environment. While London expanded relatively quickly, other regions experienced slower growth.

“When we established ourselves in Europe, there wasn’t really a market,” explains Sami Slim, CEO of Telehouse Paris. “We pioneered the concept of the carrier hotel, and over time, the snowball effect kicked in as more players joined.”

Paris became one of the most interconnected sites in Europe, while Telehouse Frankfurt initially faced challenges, re-entering the market in 2012 with a focus on managed service providers.

“Our story is different, but we have been extremely successful,” notes Dr. Béla Waldhauser, CEO of Telehouse Deutschland GmbH. The strategy in Germany diverged from London and Paris, with Frankfurt catering to medium-sized service providers rather than focusing solely on interconnection hubs. Waldhauser elaborates, “We now have ample land and power in Frankfurt, allowing us to build new data centres and meet the growing demand for higher power density solutions.”

Commitment to sustainability

As global awareness of environmental issues has grown, Telehouse has placed sustainability at the core of its operations. The company is a signatory to the Climate Neutral Data Centre Pact (CNDCP), of which Dr. Waldhauser is a board member. Recognising its responsibility as a significant energy consumer, the company is actively working on identifying and implementing measures to manage its environmental impact across its European locations.

In the UK, Telehouse has been purchasing renewable energy since 2019, and is now looking at contracting directly with solar, wind, and other sustainable energy providers. “This focus on renewables has evolved very fast year on year in terms of our commitments and our strategy,” says Pestridge. 

“We have a duty as users of large amounts of electricity, not only to the planet but also to our employees and shareholders.” Similar commitments have been made in Germany and France, aligning with broader corporate goals to achieve carbon neutrality.

Telehouse is investing heavily in enhancing energy efficiency. In Paris, the company is undertaking an €80 million retrofit of its legacy data centre, Telehouse Voltaire. “We are doing this to move our PUE from 2 to 1.3 and to achieve a forty-fold decrease in water usage,” explains Slim. Upgrades include installing advanced cooling systems and energy-efficient infrastructure, significantly lowering environmental impact while improving operational efficiency.

Building on successful models from the Nordics, Telehouse’s initiatives in Frankfurt showcase its dedication to sustainability in Germany. The company is redirecting waste heat from its data centres to provide heating for nearby residential developments, including a new neighbourhood with over 1,300 apartments.

“When we signed a contract to deliver waste heat to that neighbourhood, it was at that point in time the only big lighthouse project of its kind,” says Waldhauser. Plans are underway to expand this initiative by connecting to the city’s district heating system, further maximising environmental benefits.

Telehouse’s sustainability efforts extend beyond environmental stewardship to encompass social responsibility, particularly in the communities where its data centres operate. In the UK the Telehouse data centres are located in the London Borough of Tower Hamlets – one of the most deprived areas in the city. Telehouse has taken significant steps to support the local community.

“In the last 18 months, we’ve made huge strides in our community work,” explains Mark Pestridge. “We work closely with two charities: First Love Foundation and Leaders in Community. Through product recycling initiatives, we’ve donated over £30,000 to these organisations, alongside participating in fundraising events like 10k runs. We’re constantly exploring new ways to improve the impact of our work on the community.”

Investing in talent and diversity

Understanding that people are at the heart of innovation, Telehouse places significant emphasis on attracting and nurturing talent. The data centre industry faces a talent shortage, with an aging workforce and the need for new skills to meet technological advancements. Telehouse addresses this challenge through proactive initiatives focused on education, training, and diversity.

Telehouse invests in apprenticeship programmes and collaborates with educational institutions to introduce students to careers in the data centre industry. “We offer apprenticeships, work experience programmes, and open days for schools,” shares Pestridge. By offering hands-on experience and mentorship, the company equips the next generation with the skills necessary to succeed in a rapidly evolving technological landscape.

In Paris, Telehouse implements training programmes for unemployed individuals, integrating them into the workforce upon completion. “We train unemployed people and integrate them into the data centre industry, hiring them after training,” explains Slim. This approach not only addresses the talent shortage but also contributes to social inclusion and economic development.

Diversity and inclusion are integral to Telehouse’s corporate culture. The company actively promotes gender inclusion, challenging industry norms where women are underrepresented in technical fields.

“We have been very successful in attracting female employees. A high proportion of employees in our France office right now are women,” notes Slim. By providing leadership opportunities and fostering a culture of equality, Telehouse enhances innovation and reflects the diverse communities it serves.

Shaping the future of data centres

As the digital landscape evolves with the rise of artificial intelligence (AI), the Internet of Things (IoT), and data-intensive applications, Telehouse is strategically positioning itself to meet future demands. The company’s focus remains on delivering unparalleled connectivity solutions while embracing technological advancements and sustainability practices.

“We need to tailor solutions and services that fit what our customers are looking for, especially as AI drives higher power requirements and density,” says Pestridge. Telehouse is investing in infrastructure upgrades and expansions to accommodate these needs. In London, plans are in place for the construction of a new state-of-the-art facility with sustainability at its core, featuring advanced energy management systems and innovative methods for repurposing waste heat.

By maintaining flexibility and staying attuned to customer requirements, Telehouse ensures it can adapt to shifting market dynamics. “We adapt to every technological shift, whether it’s cloud, AI, or something new on the horizon,” asserts Slim. The company remains committed to its core strength in providing robust interconnection hubs, enabling low-latency data exchange essential for modern technologies.

“Our business operates in a favourable environment,” says Waldhauser. “The growth of AI, increasing cloud adoption, and the push for energy efficiency, alongside the shifts brought by COVID-19, have all significantly boosted our operations. The future looks exceptionally promising.”

Telehouse Europe’s journey is testament to its ability to innovate, adapt, and lead in a dynamic industry. From pioneering carrier-neutral data centres to embracing sustainability and investing in talent, the company has consistently positioned itself as a critical player in shaping the future of data centres.

As the world becomes increasingly digital, Telehouse’s commitment to connectivity, sustainability, and customer-centric solutions ensures it remains at the forefront of technological advancement. By implementing initiatives aimed at improving the energy efficiency of its operations and focusing on building robust digital ecosystems, Telehouse is well-equipped to navigate future challenges and opportunities in the European data centre landscape and beyond.