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Data Center Colocation Market in Americas - Industry Outlook and Forecast 2018-2023

SKU : ARZ180906
  • Published on : September 2018

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This market research report on Americas data center colocation market offers analysis on market size & forecast by:

Data Center Colocation Investment Analysis | 2017-2023

  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction
  • Area Net Rentable Square Feet
  • Power Capacity (MW)

Data Center Colocation Service Analysis | 2017-2023

  • Retail Colocation
  • Wholesale Colocation

Vendor Market Share Analysis 2017                           

  • Investment
  • Colocation Services                       
  • Area Net Rentable Square Feet
  • Geography (US, Canada, and Latin America)

The report covers details on market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by investment, by service type, and by geography.

Americas Data Center Colocation Market Insights and Details

Americas Data Center Colocation Market - Overview

The increasing volumes of data that is attributed to the proliferation of smartphones, high-speed broadband connectivity, and a rising number of social media users are propelling the growth of the Americas data center colocation market. The growing demand for advanced technologies such as cloud-based services, the Internet of Things (IoT), and big data analytics is attributing to the rise in cloud connectivity services in the American market. The focus on constructing modern datacenters of Tier III and Tier IV standards and the emergence of edge computing will drive demand for colocation services in the American market. Furthermore, development and investment initiatives in Montreal, Toronto, Brazil, Colombia, and Chile will contribute to the growing revenues in the market. Equinix, Digital Realty (DuPont Fabros Technology), CyrusOne, CoreSite Realty, and Switch are the major investors in the US market. These operators are developing data centers in multiple locations spanning thousands of square feet area in the Americas data center colocation market. The increased power consumption and the rise in carbon emission levels have prompted facility operators to install efficient infrastructure and procure renewable energy sources for their facilities in the market. The increasing availability of renewable power sources and low-cost electricity is attracting various vendors to invest in the construction of facilities in Montreal, Canada. The Canadian government is offering lucrative tax incentives to encourage investments in this region. The construction of greenfield data centers with a minimum area of 10,000 square feet and power capacity of >5MW across Latin America will augment the development of the Americas data center colocation market.

The telecommunication service providers, colocation service providers, enterprises and government entities are making efforts to improve the network connectivity by investing in submarine cable in the Latin American market. The adoption of lithium-ion UPS systems, DRUPS, and fuel cells will lead to the transformation of infrastructure solutions in the market. The Americas data center colocation market to witness investments of more than $11 billion by 2023, growing at a CAGR of over 3% during the forecast period. The research report offers market size analysis regarding colocation services during the forecast period.

Americas Data Center Colocation Market Analysis and Size 2023

Americas Data Center Colocation Market - Dynamics

The rising focus on the procurement of renewable energy sources for facility operations will augment the development of the Americas data center colocation market. The increasing power consumption by facilities and the need to reduce carbon footprint is encouraging service providers to purchase clean and renewable energy sources to power their existing and new facilities in the market. The leading colocation providers such as Equinix and Digital Realty are procuring renewable energy for operations in the Americas data center colocation market. Several small-scale operators are installing solar panels on the rooftops or open area of their facilities or purchasing wind energy for their operations to reduce pollution. The adoption of these energy sources will encourage operators to focus on design, redefine the installation and commissioning process, and increase physical security requirements in case of on-site power generation. Most of the colocation projects in the Montreal in Canada is being powered by renewable energy. For instance, Ascenty partnered with Mendes Holler and Santa Paulina Engenharia to build a solar plant for green energy in the market. Such initiatives will contribute to the evolution of the Americas data center colocation market.

Americas Data Center Colocation Market - Segmentation

This Americas data center colocation market research report includes a detailed segmentation of the market by investment, service type, and geography.

Data Center Colocation Market in Americas - Market Segment, share and Analysis 2023

Americas Data Center Colocation Market – By Investment

Hyperscale colocation facilities will dominate in terms of investment in the Americas data center colocation market

The Americas data center colocation market by investment is classified into electrical infrastructure, mechanical infrastructure, and general construction. Electrical infrastructure segment dominated the majority of the market share in 2017, growing at a CAGR of around 4% during the forecast period. The report offers market size analysis in terms of power capacity (MW) and square feet area for all the segments for 2017-2023. The growing demand for more efficient, less maintenance, and reduce space solutions will lead to the incorporation of modular infrastructure in the American market. The adoption of intelligent real-time monitoring software that can predict maintenance requirements, component failures, and automatic switchovers for uninterrupted operations is propelling the growth of this segment in the American market. The vendors are designing and developing Tier III facilities with a minimum of N+1 redundant infrastructure to attract a maximum number of consumers in the market. The service providers are adopting 2N redundant rack PDU and UPS systems to meet the rising demands from customers. The growing popularity of modular datacenter deployment across Latin America will boost the revenues in the Americas data center colocation market. The extensive use of cooling systems such as an indirect evaporative cooler and air/water-side economizers will drive the growth of mechanical infrastructure segment. The rising number of brownfield development and installation of on-site renewable power sources such as wind and solar energy will drive demand in the general construction segment in the Americas data center colocation market.

Americas Data Center Colocation Market – By Service Type

Hybrid infrastructure service, cloud connectivity, and interconnection will grow the customer base for service providers in the Americas data center colocation market

The service type segment in the Americas data center colocation market is categorized into retail and wholesale colocation. Retail colocation segment occupied more than half of the market share in 2017, growing at a CAGR of approximately 7% during the forecast period. The retail colocation services are highly suitable for operators that require small computing service at a single site or across multiple locations across the region. The cost of these services varies from $700 to $3,000 depending on the service provider or adopted services in the market. The increasing adoption of caged rack spaces comprising multiple racks is driving the growth of this segment in the American market. The retail service providers have neutral  carrier facilities which offer strong connectivity with multiple other datacenters and cloud platforms in the market. The increasing adoption of single or multiple racks with the total capacity of less than 300 kW will propel the growth of this segment in the Americas data center colocation market. The retail colocation market is likely to be driven by the increased demand for colocation services from organizations, especially in Latin America. The increasing demand for high computing capacity from global enterprises, cloud providers, big data, and IoT organizations will lead to the adoption of wholesale colocation services in the US and Canada over the next few years.

Americas Data Center Colocation Market – By Geography

Colocation providers investment on expansion and new projects in the US resulting in revenue growth of over 10% YOY will drive the Americas data center colocation market

The Americas data center colocation market by geography is segmented into the US, Canada, and Latin America. The US contributed to more than 85% of the investments in 2017, growing at a CAGR of over 2% during the forecast period. The report offers market size analysis in terms of colocation services, power capacity (MW), and square feet area for all the segments for 2017-2023. Virginia, Texas, California, New York, North Carolina, and Illinois are the major market for colocation constructions in the US market. The installation of energy-efficient infrastructure and procurement renewable energy sources for facilities across the US will help service providers control carbon emission levels in the market. The US region also comprises of multiple mega and hyperscale colocation facilities that contribute to the revenues in the Americas data center colocation market. The increase in construction of large and mega facilities that require medium- and high-voltage switchgear will drive the demand for superior infrastructure solutions in the American market.
Furthermore, the adoption of innovative cooling techniques such as direct liquid cooling and liquid immersion cooling solutions will propel the growth of the US market during the forecast period. Vendors such as Urbacon Data Centre Solutions, Equinix, Colo-D, and I.C.E contribute to the revenues in the Canadian market. Brazil, Chile, Colombia, Mexico, and Peru are leading countries in the deployment of datacenter in Latin America market.

Key Vendor Analysis

The Americas data center colocation market witnesses million-dollar investments by Digital Realty and Equinix is investing across the US and Canadian region. Equinix, Digital Realty, CyrusOne, Switch, and Vantage Data Centers are some of the providers investing in the US. Investments by Urbacon Data Centre Solutions in Canada and Latin America to boost their market share. The rising investments in new facilities and expanding existing ones will intensify the competition in the American market. Leading providers are estimated to add over 500,000 square feet of net rentable area and 60 MW of power capacity in the Americas data center colocation market YOY for the next few years. Various service providers are offering retail colocation and managed services to sustain the competition in the American market.

The major vendors in the Americas data center colocation market are:

  • CoreSite Realty Corp.
  • CyrusOne
  • Cyxtera technologies
  • Digital Realty
  • Equinix
  • Switch

Other prominent vendors in the Americas data center colocation market include 1547 Critical Systems Realty, 365 Data Centers, Ascenty, AT&T, Axtel, Bell Canada, CentriLogic, CenturyLink (Level 3), CloudHQ, Cogeco Peer 1, Colo-D, DataBank, Data Foundry, EdgeConnex, Entel, Expedient, Flexential (Peak 10 & ViaWest), Green House Data, Green House Data, I.C.E Datacenters, Infomart Data Centers, Internap, KIO Network,ODATA (Patria Investimentos), Quality Technology Services (QTS), RagingWire Data Centers (NTT), Rogers Communications, ROOT Data Center, Sabey Data Centers, Stream Data Center, T5 Data Center, TigoUne (UNE EPM), TierPoint, Telefónica, Urbacon Data Center Solutions, Vantage Data Center, vXchnge, and Zayo Group Holdings.

Key market insights include

  1. The analysis of Americas data center colocation market provides market size andgrowth rate for the forecast period 2018-2023.
  2. It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about theAmericas data center colocation market.
  3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
  4. It offers a complete overview of market segments and the regional outlook of Americas data center colocation market.
  5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

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