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Data Center Colocation Market in the US 2016-2020

About Data Center Colocation

A data center colocation facility allows organizations to rent space for hosting servers and storage infrastructure. It provides options such as power, bandwidth, and physical security for the infrastructure.A hosting solution managed by a service provider and owned by a client can be termed a managed hosting solution. Colocation and managed hosting services are useful for customers across different industry verticals. Colocation reduces the spending on IT infrastructure and improves the security and ownership control of the data.

Technavio’s analysts forecast the global data center colocation market to grow at a CAGR of 12.36% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global data center colocation market for 2015-2019. To calculate the market size, the report considers revenues generated by both local and global colocation vendors, irrespective of the types (retail and wholesale). The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Data Center Colocation Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Century Link
  • Digital Realty
  • Equinix
  • Global Switch
  • Level 3 Communications
  • NTT Communications
Other prominent vendors
  • Ascenty
  • AT&T
  • CentriLogic
  • China Telecom
  • Cosentry
  • CtrlS Datacenters
  • Cyrus
  • Digiplex
  • DuPont Fabros
  • Expedient Data Centers
  • Eze Castle Integration
  • Fujitsu
  • iAdvantage
  • Internap
  • Interoute Communications
  • Interxion
  • IO
  • NaviSite
  • PCCW Global
  • Peak 10
  • PEER 1 Hosting
  • Rackspace
  • ServerCentral
  • Singtel
  • Sungard Availability Services
  • Switch
  • T.C.C Technology
  • Telehouse (KDDI)
  • Telstra International
  • ViaWest
  • Zayo
Market driver
  • Reduction in capital and operational expenditure
  • For a full, detailed list, view our report
Market challenge
  • Containerized data centers
  • For a full, detailed list, view our report
Market trend
  • Green data centers
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Data Center Colocation Market in the US 2016-2020

Technavio recognizes the following companies as the key players in the data center colocation market in the US: CyrusOne, DuPont Fabros Technology, Digital Realty, Equinix, CenturyLink, and Level 3 Communications.

Other Prominent Vendors in the market are: 365 Data Centers, AT&T, ByteGrid Holdings, CentriLogic, Cogeco Peer 1, Cologix, Coresite, Colocation America, Fujitsu, Infomart Data Centers, Internap, IO, Iron Mountain, NaviSite, Peak 10, PhoenixNAP, PhoenixNAP, Rackspace, Sabey, Sentinel Data Centers, ServerCentral, Sungard Availability Services, Switch, T5 Data Centers, The Benaroya Company, TierPoint, Vantage Data Center Services and Solutions, Verizon Communications, ViaWest, vXchange, and Zayo.

Commenting on the report, an analyst from Technavio’s team said: “Incorporating implementation of SDDCs in enterprises will be a key trend for market growth. A software-defined data center (SDDC) is a data center where infrastructure is delivered as a service through virtualization of the physical infrastructure; hardware infrastructure is managed through intelligent software systems. SDDC supports both legacy applications and cloud computing services. It improves efficiency, lowers costs, provides applications in minutes, offers higher availability and better security, and creates an opportunity for the delivery of workloads through the cloud.”

According to the report, one of the key drivers for market growth is the availability of advanced network connectivity. Enterprises are witnessing a rapid increase in the digital content transmitted and manipulated in their networks. Due to rising network traffic and the increase in the complexity of network management, there is a growing need for human expertise to manage operations. However, with the adoption of colocation services, enterprises are finding it easier to manage network dynamics, control traffic flow, and scale up data center infrastructure efficiently.

Further, the report states that one of the challenges against the market growth will be the rapid evolution of technology leading to ambiguity. Due to the rapid evolution of technology and increased number of services provided by colocation vendors, enterprises are finding it difficult to choose services that best fit their business requirements. Enterprises want to ensure that they make the right business decision, especially if it involves heavy capital investments and making changes in the operational processes. Therefore, many enterprises are delaying the process of adopting colocation services, which is affecting market growth.

Companies Mentioned

CyrusOne, DuPont Fabros Technology, Digital Realty, Equinix, CenturyLink, Level 3 Communications, 365 Data Centers, AT&T, ByteGrid Holdings, CentriLogic, Cogeco Peer 1, Cologix, Coresite, Colocation America, Fujitsu, Infomart Data Centers, Internap, IO, Iron Mountain, NaviSite, Peak 10, PhoenixNAP, PhoenixNAP, Rackspace, Sabey, Sentinel Data Centers, ServerCentral, Sungard Availability Services, Switch, T5 Data Centers, The Benaroya Company, TierPoint, Vantage Data Center Services and Solutions, Verizon Communications, ViaWest, vXchange, Zayo.

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
    • Top vendor offerings
      • Table Vendor offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
  • Market landscape
    • Market overview
      • Table Comparison of unmanaged and managed solutions
      • Table Availability of tax incentives for data centers by state
      • Table Electricity price for data centers (cents/kWh)
      • Table Electricity cost in US by state (cents/kWh)
      • Table Data center tier standards
    • Market size and forecast
      • Table Data center colocation market in US 2015-2020 ($ billions)
    • Five forces analysis
      • Table Five forces analysis
  • Market segmentation by application
    • Retail colocation
      • Table Retail data center colocation market in US 2015-2020 ($ billions)
    • Wholesale colocation
      • Table Wholesale data center colocation market in the US 2015-2020 ($ billions)
      • Table Retail colocation versus wholesale colocation by revenue 2015-2020 ($ billions)
  • Market drivers
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
  • Vendor landscape
    • Competitive scenario
      • Table Market share analysis 2015
    • CenturyLink
      • Table CenturyLink: Business segmentation by revenue 2015
    • CyrusOne
      • Table CyrusOne: Business revenue 2015 versus 2014 ($ millions)
    • DuPont Fabros Technology
      • Table DuPont Fabros Technology: Business revenue 2015 versus 2014 ($ millions)
    • Digital Realty
      • Table Digital Realty: Revenue 2015 versus 2014 ($ billions)
    • Equinix
      • Table Equinix: Business segmentation by revenue 2015
      • Table Equinix: Business segmentation by revenue 2015 and 2014 ($ billions)
      • Table Equinix: Geographical segmentation by revenue 2015
    • Level 3 Communications
      • Table Level 3 Communications: Business revenue 2015 versus 2014 ($ billions)
      • Table Level 3 Communications: Business segmentation by revenue 2015
      • Table Level 3 Communications: Colocation and data center services revenue 2015 versus 2014 ($ millions)
    • Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

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