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Global Data Center Colocation Market 2017-2021

Global Data Center Colocation Market 2017-2021

About Data Center Colocation

Data center colocation is a type of data center service in which the service provider offers data center spaces to other organizations. Data center spaces include racks, private suites, as well as other full-fledged facilities. These data centers are also being developed as carrier-neutral facilities for customers to select from a wide range of available networking connectivity options. Data center services include colocation, managed colocation, interconnection, and managed hosting services.

Technavio’s analysts forecast the global data center colocation market to grow at a CAGR of 9.87% during the period 2017-2021.

Covered in this report

The report covers the present scenario and the growth prospects of the global data center colocation market for 2017-2021. To calculate the market size, the report considers the retail and wholesale colocation service revenues generated by both local and global vendors in the market.

The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Data Center Colocation Market 2017-2021, 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
  • China Telecom
  • Equinix
  • Digital Realty Trust
  • NTT Communications
  • CenturyLink
Other prominent vendors
  • 21Vianet
  • Ascenty
  • AT&T
  • British Telecom (BT)
  • China Mobile
  • China Unicom
  • Chunghwa Telecom
  • CtrlS Datacenters
  • CyrusOne
  • Deutsche Telekom
  • DuPont Fabros
  • Fujitsu
  • Global Switch
  • iAdvantage
  • Internap
  • Interoute Communications
  • Interxion
  • Level 3 Communication
  • NEXTDC
  • PCCW Global
  • Singtel
  • Sungard Availability Services
  • Switch (SUPERNAP)
  • Telehouse (KDDI)
  • Telstra International
  • ViaWest
  • Zayo Group
Market driver
  • Reduction in CAPEX and OPEX
  • For a full, detailed list, view our report
Market challenge
  • Hidden cost of colocation services
  • For a full, detailed list, view our report
Market trend
  • Implementation of SDN by colocation providers
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2021 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 – Global Data Center Colocation Market 2017-2021

Technavio recognizes the following companies as the key players in the global data center colocation market: China Telecom, Equinix, Digital Realty Trust, NTT Communications, and CenturyLink.

Other Prominent Vendors in the market are: 21Vianet, Ascenty, AT&T, British Telecom (BT), China Mobile, China Unicom, Chunghwa Telecom, CtrlS Datacenters, CyrusOne, Deutsche Telekom, DuPont Fabros, Fujitsu, Global Switch, iAdvantage, Internap, Interoute Communications, Interxion, Level 3 Communication, NEXTDC, PCCW Global, Singtel, Sungard Availability Services, Switch (SUPERNAP), Telehouse (KDDI), Telstra International, ViaWest, and Zayo Group.

Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is implementation of SDN by colocation providers. The number of organizations operating their infrastructure using colocation facilities is growing significantly irrespective of the types of services adopted. This growth in the number of customers and their business operational needs will lead to the requirement for higher reliability in the bandwidth offered by colocation providers.”

According to the report, one driver in the market is reduction in CAPEX and OPEX. Enterprises are rapidly adopting technologies, such as cloud, big data, and IoT, to gain a competitive advantage in their operating markets. Large enterprises with sufficient budgets to plan and build their private facilities are also moving toward colocation facilities for the benefits of rapid deployment. The cost of building a data center varies based on the design of the facility. Building traditional brick and mortar data center facilities that will be completely operational can take up to one and half years.

Further, the report states that one challenge in the market is hidden cost of colocation services. In colocation contracts, hidden costs play a vital role. This could affect the IT budget of an organization as the demand for its services will grow faster than expected. Every colocation provider has a specific SLA for customers adopting its services. Customers are required to carefully verify the cost of adopting the services with possible future expansion plans and scenarios with variations in demand. For example, an increase in the network bandwidth requirement will lead to additional charges and also include the cost of data backup in case of operational disturbances.

Companies Mentioned

China Telecom, Equinix, Digital Realty Trust, NTT Communications, CenturyLink, 21Vianet, Ascenty, AT&T, British Telecom (BT), China Mobile, China Unicom, Chunghwa Telecom, CtrlS Datacenters, CyrusOne, Deutsche Telekom, DuPont Fabros, Fujitsu, Global Switch, iAdvantage, Internap, Interoute Communications, Interxion, Level 3 Communication, NEXTDC, PCCW Global, Singtel, Sungard Availability Services, Switch (SUPERNAP), Telehouse (KDDI), Telstra International, ViaWest, and Zayo Group.

  • Executive summary
  • Scope of the report
  • Research Methodology
  • Introduction
    • Market outline
  • Market landscape
    • Market overview
      • Table Data center tier standards
      • Table Average rack power density of data centers in 2016 and 2021 (kW per rack)
    • Market size and forecast
      • Table Global data center colocation market 2016-2021 ($ billions)
  • Five forces analysis
    • Table Five forces analysis
  • Market segmentation by application
    • Table Global data center colocation market by colocation type in 2016 (% share of revenue)
    • Table Global data center colocation market by colocation type in 2021 (% share of revenue)
    • Table Retail vs. wholesale data center colocation revenue 2016-2021 ($ billions)
    • Retail colocation
      • Table Global retail data center colocation market by 2016-2021 ($ billions)
    • Wholesale colocation
      • Table Global wholesale data center colocation market 2016-2021 ($ billions)
  • Geographical segmentation
    • Table Global data colocation market: Segmentation by geography in 2016 (% share of revenue)
    • Table Global data colocation market: Segmentation by geography in 2021 (% share of revenue)
    • Americas
      • Table Data center colocation market in the Americas 2016-2021 ($ billions)
    • EMEA
      • Table Data center colocation market in EMEA 2016-2021 ($ billions)
    • APAC
      • Table Data center colocation market in APAC 2016-2021 ($ billions)
  • Decision framework
  • Drivers and challenges
    • Market drivers
    • Market challenges
  • Market trends
    • Increased interest of colocation providers in operating green data centers
    • Implementation of SDN by colocation providers
    • Edge computing facilities
    • Increasing number of M&As
  • Vendor landscape
    • Competitive scenario
      • Table Global data center colocation market share analysis 2016 (% share of revenue)
      • Table Global data center colocation market: M&As 2016-2017
  • Key vendor profiles
    • China Telecom
      • Table China Telecom: Internet data center (IDC) services revenue 2015 and 2016 ($ billions)
      • Table China Telecom: Colocation service offerings
      • Table China Telecom: Recent developments
    • Equinix
      • Table Equinix: Business revenue 2015 and 2016 ($ billions)
      • Table Equinix: Geographical segmentation by revenue 2016 (% share)
      • Table Equinix: Colocation facilities
    • Digital Realty Trust
      • Table Digital Realty Trust: Business revenue 2015 and 2016 ($ billions)
      • Table Digital Realty Trust: Geographical segmentation by revenue 2016 (% share)
      • Table Digital Realty Trust: Data center locations
    • NTT Communications
      • Table NTT Communications: Long Distance and International Communication Business revenue 2015 and 2016 ($ billions)
      • Table NTT Communications: Data center portfolio
    • CenturyLink
      • Table CenturyLink: Colocation business revenue 2015 and 2016 ($ millions)
      • Table CenturyLink: Data center locations
    • Other prominent vendors
      • Table Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

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