Data Center Colocation Market Surpasses $25B – 451 Research

451As per the latest release of the Datacenter KnowledgeBase (DCKB) from 451 Research, the global data center colocation market has surpassed a run rate of $25bn in revenue with six percent of datacenter firms accounting for more than half of global revenue. The DCKB database covers 3,685 individual datacenters from 1,086 datacenter companies serving North America, EMEA, APAC and LATAM.

The top 10 players account for 28% of the $25bn in revenue and the top 60 players account for 52% of the $25bn in revenue. Despite a spate of M&A activity in the sector, more than 1,000 additional companies, many of them strong regional players, generate the remaining 48% of revenue.

“At its heart, the multi-tenant datacenter business is a regional business,” said Greg Zwakman, 451 Research Director, Quantitative Services. “So despite active consolidation and some concentration at the top, much of the market remains highly fragmented, with a mix of national and local players.”, continued Mr. Zwakman.

According to 451 Research, over the past 10 years, much of the investment to build multi-tenant datacenters has been made in large markets where there are many potential tenants. “We are seeing growing interest in markets outside of those top few cities, however” said Kelly Morgan, 451 Research Director for Multi-tenant Datacenters in North America.

To access the full announcement, please visit https://451research.com/images/Marketing/press_releases/DCKB_Press_Release.pdf

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