Skip to main content

Consolidation in Global Data Center Colocation Market

Large enterprises continue to move some of their IT data center infrastructure to colocation facilities. That said, there was more vendor consolidation activity during last year, as a few key players decided to reduce their presence or totally exit the market.

According to the latest worldwide market study by 451 Research, the global colocation and wholesale market revenue will top $48 billion by 2021 in its latest quarterly release of the Data Center KnowledgeBase (DCKB), which tracks nearly 4,500 data centers operated by 1,193 companies worldwide.

Colo Data Center Market Development

In Q3 2016, the data center colocation and wholesale market gained $28.9 billion in annualized revenue. The majority of this revenue (42 percent) was generated in North America, with Asia-Pacific generating 31 percent.

Following a year of significant M&A activity in 2015, the first three quarters of 2016 maintained the momentum with notable industry consolidation that included Equinix completing its acquisition of Telecity Group, Tierpoint buying Windstream and Digital Realty Trust taking on eight of Equinix’s European data centers, among many other deals.


According to the 451 Research assessment, the data center market continues to grow, not only in many of the main markets, but increasingly in edge markets outside of the global top 20.

"Interest in edge markets is one of the factors driving consolidation," said Leika Kawasaki, senior analyst at 451 Research. "Over the next one to two years, we expect to see growing interest from top providers and investors in markets outside of the top 20, particularly in Asia and Latin America."

In terms of annualized colocation and wholesale revenue, as of Q3 2016 Equinix and Digital Realty remained the global leaders, with 9.5 percent and 5.7 percent share, respectively.

Once the Equinix acquisition of Verizon's data center business closes in mid-2017, Equinix market share is expected to expand to 11.4 percent of global annualized revenue, equivalent to double that of the second-largest provider, Digital Realty Trust.

Popular posts from this blog

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Remote Working Drives Demand for Internet Access Solutions

High-speed internet access from home is essential to participate in the Global Networked Economy. The worldwide residential broadband service market reached a subscriber base of over 1.1 billion users in 2020 -- that's a 4 percent increase from the previous year. Clearly, the COVID-19 pandemic accelerated demand for broadband connectivity. The need for high-capacity residential broadband will remain, even post-pandemic. According to the latest worldwide market study by ABI Research, 5G Fixed Wireless Access (FWA) will be the fastest-growing residential broadband segment to increase at a CAGR of 71 percent, exceeding 58 million subscribers in 2026. Remote working, online learning, and virtual healthcare created new demand for high-speed broadband throughout 2020. The significant increase in the use of internet-based entertainment services also prompted broadband users to upgrade, while more households without broadband access subscribed for the first time. Residential Broadband Serv

Warehouse Robot Deployment Gains New Momentum

The retail and wholesale back-office infrastructure market is being transformed by technology. The warehousing industry has accelerated automation efforts due to the increased order volume and labor shortages driven by the global pandemic. In addition to technology solutions such as handheld devices with enhanced capabilities, autonomous, collaborative, and mobile robots are proving to be the fastest-growing productivity-enhancing solution in the warehouse workspace. Commercial Robotics Market Development According to the latest worldwide market study by ABI Research, global commercial robot revenue in warehouses will have a Compounded Annual Growth Rate (CAGR) of over 23 percent from 2021 to 2030 and exceed $51 billion by 2030. "Mobile robots are at the heart of the warehouse robotics market and account for most shipments and revenue. These robots, made up of Autonomous Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), are being used to move goods within the warehouse a