Tuesday, October 17, 2017

Dallas, Washington DC top US colocation revenues with Equinix, Digital Realty as data centre frontrunners

US wholesale data centre market has grown in 2016 as rapidly as retail colocation, with Silicon Valley loosing its prominence.

Dallas and Washington DC have both last year sustained substantial growth in the colocation data centre space with revenues growing double the speed of the US national average.

According to the Synergy Research Group, this contrasted with a decreasing growth rate in Silicon Valley, which was at the end of 2016 behind Dallas, Washington DC, Chicago, Atlanta and Austin.

The top ten metro areas accounted for 74% of US retail and wholesale colocation revenues in 2016, with New York and Washington DC alone accounting for 31%.

Synergy highlights that across the ten metros Digital Realty is the leader in five, helped by its acquisition of Telx, while Equinix is the market leader in three.

Other operators that feature strongly in the market share rankings for these metros include CyrusOne, DuPont Fabros, QTS, CenturyLink, Verizon, Coresite, SunGard, NTT, AT&T and Infomart.

The research also shows that in Q4 the Washington DC metro (which includes parts of Northern Virginia) overtook New York to become the largest metro market for colocation in the world, though for the full year New York still maintained a narrow lead.

They are closely followed by Tokyo and London. In addition to these four, the ranking of the top ten metros in the world for retail and wholesale colocation is rounded out by Silicon Valley, Shanghai, Dallas, Singapore, Frankfurt and Chicago.

John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group, said: “Colocation is an increasingly global market but also demands highly localised services focused on data centre facilities close to clients in key economic hubs. This combination of global and local factors has been a major factor in driving the ongoing industry consolidation.

“Another key feature in the market is the aggressive growth of cloud which has helped the US wholesale market to grow twice as rapidly as retail colocation.”