Study: Global Colocation Supply Tightens

More colocation providers are struggling to keep up with demand, according to market data from the research firm TeleGeography. More than 41 percent of global colocation sites surveyed by TeleGeography were at least 80 percent full at mid-2010, up from 34 percent of sites a year earlier.

“While a fair amount of space remains available, demand has been outstripping supply,” said TeleGeography analyst Jon Hjembo. “Operators surveyed by TeleGeography had less space available at mid-year 2010 than they did a year earlier, even though they added 1.5 million square feet of new colo space and 124 megawatts of power during those 12 months.”

The data is based on surveys of 708 colocation providers in major markets around the globe as TeleGeography compiled its annual Colocation Database, the firm’s online guide to global colo service providers and sites.

In its analysis, TeleGeography noted that both new supply and ongoing demand are particularly strong in established major colocation markets. In Europe, colo providers have invested heavily in new facilities in London, Frankfurt, and Paris, while in the U.S., they have deployed most of their new capacity in the San Francisco, Washington, and New York metropolitan areas.

“Despite the new development, average colocation space and power availability in cities such as London, Washington, and San Francisco has persistently remained at 25 percent or less,” the firm noted. London was the market with the least supply, with less than 10 percent of total built space currently available.

Some data points from TeleGeography’s analysis:

  • Equinix alone has added more than 1 million gross square feet of new colocation site space and more than 42 megawatts of colocation power capacity since September 2008 – not counting its acquisition of Switch and Data.
  • TelecityGroup, the CSF Group, and Internap have also recently completed significant development, each with well over 100,000 square feet of new space.
  • TelecityGroup has added 22 megawatts of new power capacity to its sites over the past two years.

For more coverage of the colo market, see our Colocation Channel.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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