The Colocation Facilities industry fared extremely well over the five years to 2017, as the continual move toward online operations caused an increase in demand for server space. Demand for storage and server power has risen substantially, and customers use colocation facilities as a way to store server equipment. The industry has experienced a supply shortage in recent years; colocation facilities are filling faster than operators can create space. In response, companies in the industry have increased prices, which has helped push up profit margins. Over the five years to 2022, industry revenue is projected to continue increasing, driven by an increasing number of businesses and rising electricity costs. Colocation facilities can set a reduced energy rate with utility providers, and infrastructure is generally highly energy efficient. Therefore, the continued overall trend to be energy efficient will push customers toward colocation facilities.
Industry operators own and operate data centers that primarily lease equipment space to customers. Companies in the industry also offer auxiliary services including power management, security and network neutrality. Customers generally use industry services as off-site data storage to back up their data or to enable them to focus on other parts of their business without paying for these operations.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.