Story image

Hyperscale data centre proliferation boosting colocation market

27 Mar 2019

Hyperscalers flexing their muscles is driving a burgeoning colocation data centre market.

That’s according to new data from Synergy Research Group, which shows that hyperscale operators are the fastest growing customer category for colocation providers.

For both wholesale and retail colocation, 2018 revenue from hyperscale customers grew much more rapidly than revenues from other service provider customers and from enterprises.

The overall colocation market grew by 10 percent in 2018, with the total market exceeding US$34 billion for the year. As aforementioned, hyperscalers were the big movers and shakers with revenue growth of 24 percent from hyperscale operators in the wholesale segment and by 16 percent in the retail segment.

Hyperscale operators comprise the world’s major cloud and internet service firms, including the largest operators in IaaS, PaaS, SaaS, search, social networking and e-commerce.

Other types of service provider were the next fastest growing customer category, followed by enterprise customers. Enterprise spending on wholesale colocation was relatively flat in 2018 compared to 2017, while enterprise spending on retail colocation grew by 7 percent.

The other service provider category includes telcos, non-hyperscale cloud providers and internet service firms, hosting/outsourcing companies and content & digital media service providers. The enterprise category includes all other industry verticals plus government and the public sector.

In terms of geographic markets, growth was strongest in Asia Pacific, followed by Europe, the Middle East, and Africa, and North America.

Specifically, among the 20 largest country markets the highest growth rates were achieved in China, Brazil, Hong Kong, Japan, Germany and Singapore.

“It comes as no surprise that hyperscale operators are providing a boost to colocation providers, as they are on a charge to rapidly extend their worldwide data centre footprint and in 2018 ramped up their capital expenditure by no less than 43 percent,” says Synergy Research Group chief analyst John Dinsdale.

“In order to support this rapid growth they cannot just build their own data centres, so they also need to rely on colocation providers to lease out both large wholesale facilities and capacity at smaller edge locations. Hyperscale operators are becoming an ever-more important source of business for leading colocation companies such as Equinix, Digital Realty, Interxion, CyrusOne, QTS and GDS.”

Huawei FusionServer Pro built for 'intelligent transformation'
The next generation X86 servers draw on an intelligent acceleration engine, an intelligent management ending, and intelligent data center solutions for ‘diverse’ scenarios as transformation shifts from digital to intelligent.
HFW deploys digital edge strategy on Equinix
Equinix announced that global law firm HFW has collaborated with Equinix to build out its digital edge in key markets including Dubai, London, Hong Kong, Melbourne and Paris.
DE-CIX and Datacenter One sign service deal for Germany
Datacenter One’s LEV1 data centre in Leverkusen is the first to be connected to DE-CIX, with further DE-CIX sites to be created in the next few years as part of the agreement.
Teradata expands as-a-service offerings for Advantage platform
Data intelligence company Teradata has announced three new cloud and on-premise solutions that are now integrated into its Teradata Vantage platform.
DigiPlex opens up Nordic data centers to international customers
"The Nordics are Europe's premier market: a firm deploying 100 megawatts over 20 years could save approximately $2 billion by placing their data center in Sweden or Norway versus the U.K."
HPE & Nutanix join forces to deliver hybrid cloud as a service
The two tech giants have partnered to offer a fully integrated solution that capitalises on the hybrid IT market.
Opinion: The growing importance of sustainability in data centres
Aruba's Alessandro Bruschini discusses why to carry on growing, the data centre industry will have to turn to green methods of energy consumption and production.
Equinix releases Azure Stack-as-a-Service in APAC
The hybrid cloud solution offers pre-configured, Microsoft validated systems, pre-installed into Equinix IBX data centres.