Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Small Business

    Data Center Colocation Market to Reach $33 Billion

    By
    Nathan Eddy
    -
    April 1, 2016
    Share
    Facebook
    Twitter
    Linkedin
      451 and datacenters

      The global colocation market will reach $33.2 billion by 2018, according to 451 Research’s latest quarterly Datacenter Knowledgebase (DCKB) release, which tracks nearly 4,800 data centers operated by 1,286 companies worldwide.

      In the fourth quarter of 2015, the data center colocation market saw $27 billion in annualized revenue, with the majority of this revenue (54.6 percent) continuing to be derived from local providers with less than $500 million in annualized colocation revenues.

      The company estimated that the global colocation market would grow in terms of total operational square feet from today’s 132.4 million square feet to 176.5 million by the end of 2018.

      Among the largest providers, Equinix is the market leader in the combined wholesale and retail colocation market with a share of 8.1 percent of global annualized wholesale and retail colocation revenue.

      Digital Realty, primarily a wholesale provider, is the second largest supplier in terms of revenue at 5.6 percent, but leads the global market in terms of operational square feet with a 7.8 percent share globally.

      “Equinix and Digital Realty have been astute in their acquisitions—making targeted purchases in key geographies,” Kelly Morgan, research director for North America Datacenters at 451 Research, told eWEEK. “They also have not been afraid to buy some of the larger providers with multiple assets, which have allowed them to grow more quickly. Both have also had fairly clear business models, though Digital’s has shifted somewhat since the purchase of Telx, which they have articulated well to lenders and investors, enabling them to raise capital and grow more quickly than competitors.”

      The report estimated that today, the world’s largest region in terms of total operational space for colocation—space supporting IT equipment—is Asia Pacific (40.1 percent).

      North America is second largest with 33.7 percent of total global operational square feet, while Europe, Middle East and Africa (EMEA) accounts for another 22.1 percent. The remaining 4.1 percent of space is in Latin America.

      “We continue to see strong enterprise adoption of hybrid solutions—a mixture of owned data centers, leased data center space, managed and dedicated hosting, and cloud—infrastructure-as-a-service as well as software-as-a-service,” Morgan said. “Since many, if not most, cloud/hosting providers lease data center space, this has been driving strong demand in the sector and will continue to do so. We are seeing a continued move to low-cost sites—for example, in states with low electricity prices—which tend to be rural.”

      Morgan noted, however, that there is also growing interest in having small data centers close to end users, particularly for content and cloud providers, and these tend to be in or near urban areas.

      “So, around half of the multitenant data center space in the U.S. has been built in the top 10 markets, and some continue to be popular. We expect to see growth in many smaller cities or rural areas going forward as well,” she said.

      Nathan Eddy
      A graduate of Northwestern University's Medill School of Journalism, Nathan was perviously the editor of gaming industry newsletter FierceGameBiz and has written for various consumer and tech publications including Popular Mechanics, Popular Science, CRN, and The Times of London. Currently based in Berlin, he released his first documentary film, The Absent Column, in 2013.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×