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Technavio’s market research analyst predicts the data center colocation market in the US to grow at a CAGR of almost 9% by 2020. The use of data center IT infrastructure has increased with the introduction of virtualization, which has intensified competition among businesses. The growing business requirements have prompted enterprises to use retail and wholesale colocation space to host additional infrastructure for business continuity. Data center colocation reduces the need for capital investment involved in the construction of data centers. It also lowers the operational costs. Colocation vendors are offering several managed colocation services through which enterprises can rent infrastructure managed by the vendors themselves. The vendors provide uninterrupted services and maintenance in data center facilities which increases the productivity and performance of enterprises, resulting in increased demand for colocation facilities.
The demand for energy-efficient data centers with minimum environmental impact has helped in the emergence of different metrics, standards, and certifications for data center environments. Rise in carbon emissions and growing consumption of electricity by data centers across the globe are propelling the construction of green data center facilities. These facilities assist in the operation of energy efficient IT, power, and cooling infrastructure. They are equipped with mechanisms such as free cooling, consolidation, and waste recycling to improve their overall performance. Several colocation vendors are also using renewable energy sources to power their data centers, which will help in reducing electricity cost and carbon footprint.
Colocation services have a wide usage among enterprises in the US. The market comprises few large-scale data center colocation service providers and several small vendors who provide data center colocation services. The colocation service vendors offer outsourcing services to enterprises that find it difficult to manage their data center facilities in-house. These providers are experts and skilled in managing data centers efficiently and troubleshooting the network in case of any problem. Vendors are actively engaging in mergers and acquisitions to expand their footprint and meet the rising business demands worldwide.
Leading vendors in the market are -
Other prominent vendors in the data center colocation market in the US include 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, QTS, 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.
Wholesale data center colocation will be the fastest-growing segment in the market during the forecast period and is likely to register a CAGR of around 15%. The adoption of wholesale colocation data centers is high among cloud service providers (CSPs), large enterprises, government agencies, and other collocation providers that rent data center space through partnerships to offer services to their customers in a particular region. As these facilities are enabled with adequate floor space, power, cooling, and network connectivity, they are cost-efficient and reduces the time and capital investment involved in building a data center from scratch. The segment is anticipated to generate high revenues in the coming years due to the growing business needs of enterprises owing to the high adoption of cloud services, big data, and IoT.
Upcoming trends such as infrastructure innovations in data centers are gaining popularity in the market where vendors are coming up with advanced products and services to develop an efficient infrastructure. They are replacing blade servers with micro servers and traditional storage systems with flash storage. Several contemporary colocation facilities are equipped with innovative network infrastructure to reduce the operational expenditure. Vendors are also improving the flexibility of the racks in data centers to enable better cable management and support in-rack cooling installations.
This report provides a number of factors contributing to the adoption, limitations, and opportunities of the data center colocation market in the US. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.
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Data center colocation is a provision for leasing computer servers and storage mechanisms to other enterprises. Such facilities offer several alternatives such as bandwidth, power, and physical security to the servers and storage. Colocation and managed hosting amenities are beneficial for customers across several industrial sectors. Colocation also lowers the expenses on IT infrastructure and enhances security and ownership management of the data. The US has the highest number of operational data center colocation facilities. The growing requirement among enterprises for a cost-effective renting rack space and operating IT infrastructure has boosted the demand for colocation facilities that are reinforced with innovative cooling, power, and carrier networking infrastructure.
The report, data center colocation market in the US, is part of Technavio’s ICT research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as automatic identification system, cloud computing, data center, enterprise application, IT security, ITO and BPO, and product lifecycle management. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.
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