As the last several years have shown, bigger is better when it comes to running a colocation data center services business. The biggest companies in retail and wholesale data center markets have further secured their dominance by acquiring hefty rivals, and there’s been a wave of consolidation in secondary markets, as smaller players seek to scale in order to compete.
Large multinational customers prefer a provider that can give them infrastructure at national or global scale, and if you’re a company with one or two regional locations, you’re mostly stuck competing with public cloud giants like Amazon and Microsoft for the dollars of local small and mid-size businesses.
The wholesale colocation data center market share of San Francisco-based Digital Realty Trust, the biggest company in that market, is about equal to the combined market share of the rest of the top-five providers in the category, according to data shared exclusively with Data Center Knowledge by Structure Research. Market share of Redwood City, California-based Equinix, the biggest player in the retail colocation market, is almost double that of the second-largest provider in the space: China Telecom.
Here are the five largest wholesale data center providers and their global 2016 market share (market share numbers courtesy of Structure Research).
Five Largest Wholesale Data Center Providers
1. Digital Realty Trust: market share 20.5 percent
Digital Realty's 365 Main data center in San Francisco (Photo: Digital Realty)
2. Global Switch: market share 7.7 percent
Singapore Tai Seng data center by Global Switch (Photo: Global Switch)
3. DuPont Fabros Technology: market share 6.0 percent
ACC7 data center in Ashburn, Virginia, by DuPont Fabros (Photo: DuPont Fabros)
4. CyrusOne: market share 4.3 percent
CyrusOne's Chandler I data center outside of Phoenix (Photo: CyrusOne)
5. China Telecom: market share 4.3 percent
China Telecom's Inner Mongolia data center (Source: China Data Centers: Something Special)
Here are the five largest retail colocation providers and their global 2016 market share (market share numbers courtesy of Structure Research):
Five Largest Retail Colocation Data Center Providers
1. Equinix: market share 10.5 percent
Equinix's HK1 data center in Hong Kong (Photo: Equinix)
2. China Telecom: market share 5.9 percent
China Telecom data center in Shanghai (Photo: China Telecom)
3. China Unicom: market share 4.3 percent
A rendering of China Unicom's Global Center data center in Hong Kong (Image: China Unicom)
4. Telehouse (KDDI): market share 3.3 percent
Telehouse Teleport data center in New York (Photo: Telehouse)
5. NTT Communications: market share 2.1 percent
Inside the CA3 data center in Sacramento, California, by NTT subsidiary RagingWire (Photo: RagingWire)