Data Center Colocation Market in Americas - Is Hybrid Infrastructure Services Driving Growth? | Arizton

Growing adoption of cloud-based services in countries such as Brazil, Colombia, and Chile will boost revenues in the data center colocation market in Americas.

Arizton’s recent market research report on the data center colocation market in Americas provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market by industry investment (electrical infrastructure, mechanical infrastructure, and general construction), by service type (retail and wholesale), by geography (US, Canada, and Latin America),and offers detailed competitive analysis.

The data center colocation market in Americas is estimated to record investments of more than $11 billion by 2023, growing at a CAGR of over 3% during 2017-2023.

The increasing adoption of cloud-based service, big data analytics, and IoT services is propelling the growth of the data center colocation market in Americas.Telecommunication service providers, colocation service providers, enterprises, and government entities are working towards improving the connectivity in the region and adopting innovative infrastructure in the American market.

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The top 3 drivers and trends are driving the investments in the data center colocation market in Americas are discussed below:

Impact of Cloud Connectivity and Hybrid Infrastructure Services on Colocation Market

The rising demand for cloud connectivity and hybrid infrastructure services is augmenting the growth of the data center colocation market in Americas. Various colocation providers have announced cloud connectivity services to major cloud platforms such as AWS, Microsoft, Google, Oracle, IBM, Equinix, Digital Realty, and CyrusOne to widen their consumer reach in the global market. Cloud connectivity, edge locations, and hybrid infrastructure services are the key enablers of enterprises opting to colocate datacenter space in the Americas. The service providers are leveraging these services to expand retail and wholesale spaces across the data center colocation market in Americas. For instance, IBM expanded its presence in the US with four new datacenters to increase the demand for its cognitive capabilities. The growing popularity of cloud computing across the private sectors and government entities will drive the growth of these services in the American market. It is expected that more than 85% of colocation facilities in the US will be cloud-enabled by the end of the forecast period. Moreover, the growing adoption of cloud-based services in countries such as Brazil, Colombia, and Chile will boost revenues in the data center colocation market in Americas.

Consolidation Will Increase the Demand for Wholesale Colocation Facilities

Consolidation of facilities by enterprises and government agencies to support the green operational environment will transform the data center colocation market in Americas. The operators are investing in the integration of modern hardware and software that will enable them to reduce operating cost through improvisation in energy efficiency, use the cloud, and improve security systems in the American market. In 2015, around 10,500 datacenters were identified operational,and approximately 3,100 facilities were closed. Federal governments realized the saving of about $1 billion through the closure of 3,100 datacenters. The incorporation of this initiative will enable organizations to operate environment-friendly facilities and boost development in the data center colocation market in Americas. The increasing focus on facilities developments from the federal government will lead to investment in colocation facilities or private cloud datacenters in the American market. The federal government and the state government is also planning to consolidate their data center infrastructure to reduce cost and improve efficiency in the market.

The growing demand from local government for wholesale colocation spaces will create lucrative opportunities for leading operators in the data center colocation market in Americas.

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Growth in Mergers and Acquisitions (M&A) Activities in the Market

The largest colocation service providers investing over than $500million in new construction and expansions in the data center colocation market in Americas. In 2017, more than 30 M&A activities were witnessed across Americas, valued at more than $18 billion, 15 million in square feet area, and 500+ MW of power. The increasing demand for superior services is contributing to the growing number of M&A activities in the American market. The service providers are aiming to grow their portfolios with these strategic partnerships in the data center colocation market in Americas. Several real estate and investment firms are contributing to the acquisition of facilities and leases in the American market. In 2016, the data center industry in Americas witnessed the acquisition of about $2 billion, whereas, in 2017, M&A activities was worth $18 billion. Additionally, the development of the secondary facility markets and edge datacenters will boost investments in the data center colocation market in Americas.

The leading vendors in the data center colocation market in Americas are CoreSite Realty Corp., CyrusOne, Cyxtera technologies, Digital Realty, Equinix, and Switch.

The complete overview of the latest market research report on data center colocation market in Americas by Arizton is now available.

The report also offers a detailed study of major trends, drivers, challenges, and also provides the market size and forecast for major geographical regions and key countries.

Source: https://www.arizton.com/market-reports/americas-data-center-colocation-market

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