Data center colocation: Key market research findings
- Need to reduce capital and operational expenditures fuels market growth
- Increasing number of green data center facilities
- Key vendors – Colt Technology Services, Digital Realty, Equinix, Global Switch, Interxion, and NTT Communications
Technavio’s market research analysts predict the data center colocation market in Western Europe to grow at a CAGR of around 17% between 2016 and 2020. The growth of this market is spurred by the need to reduce capital and operational expenditures. Data center colocation reduces the need for capital investment, which is involved during the construction of data centers. It also reduces the operational expenditure to a considerable extent. Colocation vendors also provide managed colocation services through which enterprises can rent infrastructure managed by the vendors themselves. Furthermore, the vendors offer uninterrupted services and maintenance with regard to data center facilities, resulting in increased productivity and performance of enterprises.
The new market research report from Technavio presents a breakdown and analysis of the data center colocation segments based on the application.
“The increase in carbon emissions and high consumption of electricity by data centers worldwide are factors leading to the construction of green data center facilities. These facilities help in the operation of energy efficient IT, power, and cooling infrastructures. Concepts such as free cooling, use of renewable energy sources, consolidation, and waste recycling are being implemented in green data centers to improve their performance. Many colocation vendors are also using renewable energy sources to power their data centers; thereby, reducing electricity costs and carbon footprint,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research.
In terms of revenue, the retail colocation market will grow significantly over the next four years compared with the wholesale colocation market because of the adoption of advanced technologies by enterprises in all industry verticals. Retail colocation is a shared facility where enterprises rent space and host IT equipment within racks provided by colocation vendors. The vendors also provide power, cooling, and network connectivity. Retail colocation includes renting racks, rack cages, and private suites in a large data center facility.
The key vendors in the data center colocation market in Western Europe include Colt Technology Services, Digital Realty, Equinix, Global Switch, Interxion, and NTT Communications. Apart from these vendors, other main contributors to the market comprise of international and local telecommunications operators in the region who also offer cloud services apart from colocation spaces. Besides, there are many local vendors who operate less than five data center facilities. The UK, Germany, the Netherlands, and France are leading revenue contributing regions in the market. These countries are the preferred locations for data center construction owing to high business demands.
A more detailed analysis is available in the Technavio report, Data Center Colocation Market in Western Europe 2016-2020.
We can customize reports by other regions and specific segments upon request.
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