Data Center Colocation Market: What are the Main Drivers and Challenges? | China Telecom Corporation Limited, CyrusOne, Cyxtera Technologies, Digital Realty, Equinix, Global Switch, Interxion, KDDI Corporation, Navisite, NTT Communications, Zayo Group
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The process of hosting an onsite facility requires skilled employees to run the operations. It also involves expenditure on infrastructure maintenance and server management. In addition, setting up a new facility increases the overall CAPEX of enterprises and requires a large amount of initial investments. This has led to SMEs and large enterprises increasingly switching to colocation hosting, thereby driving the data center colocation market demand. These service providers offer several services such as skilled managed IT services, internet solutions, and interconnection services based on enterprise requirements.
The key players covered in this study: -
2. China Telecom Corporation Limited
3. China United Network Communications Co., Ltd.
5. Cyxtera Technologies
6. Digital Realty
8. Global Switch
10. Internap Corporation
11. KDDI Corporation
12. Keppel Data Centres
13. Level 3 Communications
15. NTT Communications
20. Zayo Group
The wholesale data center colocation market is anticipated to showcase a growth of nearly 17% CAGR over the forecast timespan. These providers rent the entire constructed facility to customers. They usually serve large-scale enterprises and rent out the data center space that ranges between 10,000 – 20,000 sq. feet or larger along with the cooling & power infrastructure. Several multinational enterprises that need to store a massive amount of data are dependent on these providers. The enterprises are responsible for bearing the costs that are associated with the power, capacity, network connectivity, and internal staff.
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Wholesale users benefit from economies of scale as the services provide reduced cooling and power costs in comparison with retail colocation. Such factors are encouraging several large-scale industries to establish their facilities in the space offered by these players, thereby accelerating the data center colocation market growth.
The energy sector is expected to witness a high adoption of these services due to the increasing requirements for effective storage facilities for high-performance computing, data transfer & processing, and back-up. The companies operating in this sector are partnering with data center colocation market players for improving the efficiency in these data management tasks.
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Major players operating in the market are Verizon Communication Ltd., Centurylink Technology Solutions, Equinix, Inc., NTT Data Corporation, Interxion Holding NV, Internap Corporation Global Switch Corporation, Cyxtera Technologies, Inc., KDDI Corporation, China Unicom, China Telecom Corporation Limited, Digital Realty Trust, Inc., CyrusOne, Inc., and Rackspace, Inc., among others. Several service providers in the industry are adopting strategies to address the growing demand for colocation facilities from various industrial sectors.
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