The Colocation Facilities industry has fared extremely well over the five years to 2018, as the continual move toward online operations has boosted demand for server space. Customers use colocation facilities to store server equipment. Consequently, growth in the percentage of services conducted online and private investment in IT has benefited revenue. Over the five years to 2023, industry revenue is projected to continue rising, driven by an increasing number of businesses and rising electricity costs. Colocation facilities can set a reduced energy rate with utility providers, and their infrastructure is generally highly energy-efficient. Therefore, the continued overall trend toward energy efficiency will attract customers to colocation facilities. However, the industry experiences a significant level of external competition, primarily from customers' in-house operations.
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.
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