A number of factors have fostered growth in the co-location market in recent years. Lack of new facilities, burgeoning power and space requirements, and escalating costs have led to a dash for co-location services. The recession has inevitably slowed the building of new data centres as new projects are put on hold. But this and enterprises looking to reduce their capital expenditure have only served to buoy up demand for co-location and associated managed services. Steady growth in the market will continue because demand continues to outstrip supply. Legislation and compliance issues continue to ensure that security, availability and energy remain top priorities for enterprise and public sector customers. Cloud computing is unlikely to reduce demand for co-location services in the medium term - security and compliance issues will mean that even public and private clouds will need regional co-location services.
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