451 Research has projected that the global data center colocation market will 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. Annualized revenue of the colocation market is projected to reach $33bn worldwide by end of 2018.
451 Research estimates that today, the world’s largest region in terms of total operational space for colocation (space supporting IT equipment) is Asia Pacific (40.1%). Growth in APAC has been fueled by the sheer size of the economy and a less entrenched installed base of enterprise facilities with which colocation providers must compete. In addition, some Asian countries have been supporting their colocation industries with special zones and tax treatment.
North America is the world’s second largest region with 33.7% of total, global operational square feet of colocation space, while Europe, Middle East and Africa accounts for another 22.1%. The remaining 4.1% of space is in Latin America.
These survey results are published in 451 Research’s latest quarterly Datacenter Knowledgebase (DCKB) release, which tracks nearly 4,800 data centers operated by 1,286 companies worldwide.
Among the largest providers, Equinix is the market leader in the combined wholesale and retail data center colocation market with a share of 8.1% of global annualized wholesale and retail colocation revenue. Digital Realty, primarily a wholesale data center provider, is the second largest supplier in terms of revenue at 5.6%, but leads the global market in terms of operational square feet with a 7.8% share globally.
“Colocation is quickly becoming the nexus of both cloud and enterprise IT,” said Katie Broderick, Research Director, 451 Research. “The colocation market is serving as datacenter arms dealer to both enterprises and the cloud. In this process, colocation is often becoming the strategic connection point between the two.”
About 451’s Datacenter KnowledgeBase
The DCKB database covers 4,799 individual data centers operated by 1,286 data center companies serving North America, Europe, Middle East and Africa (EMEA), Asia Pacific (APAC) and Latin America (LATAM). 451 Research is a preeminent information technology research and advisory company with a focus on technology innovation and market disruption.
The Datacenter KnowledgeBase tracks colocation and wholesale data center facilities globally, and provides insight into facility capacity and capability, investment and expansion opportunities, and future facility builds. The 451 Research team gathers data from primary sources including on-site visits, assessments and direct outreach, to validate and collect this data directly from data center operators.