DATACENTER NORTH AMERICAN MULTI- TENANT DATACENTER SUPPLY EXECUTIVE OVERVIEW EMERGING MAJOR MARKETS 2012 SEPTEMBER 2012

Transcription

1 NORTH AMERICAN MULTI- TENANT DATACENTER SUPPLY EMERGING MAJOR MARKETS 2012 DATACENTER SEPTEMBER 2012

2 REPORT SNAPSHOT TITLE North American Multi-Tenant Datacenter Supply: Emerging Major Markets 2012 ANALYSTS RELEASE DATE September 2012 LENGTH Jeff Paschke, Research Director, Datacenters, Kelly Morgan, Research Manager, Datacenters, Rick Kurtzbein, Research Analyst, Datacenters, Michael Levy, Analyst, Datacenters 79 pages EXECUTIVE SUMMARY The North American Multi-Tenant Datacenter Supply: Emerging Major Markets 2012 report provides readers with an overview of 10 emerging major datacenter markets in North America: Austin/San Antonio, Denver, Detroit, Houston, Minneapolis, Philadelphia, Portland, San Diego, Tampa and Toronto. In this report, multi-tenant datacenters are considered multi-customer colocation and wholesale facilities. Single-user enterprise datacenters and single-tenant datacenters are specifically excluded from this analysis. This report is our third look at emerging major markets in North America. In it, we provide current supply, demand and utilization metrics, as well as market-specific analysis similar to Tier1 Research s previous supply report series. We also size each market by existing supply levels, include maps of datacenter locations, and identify all providers, as well as citing the top three providers in each market. The multi-tenant datacenter landscape continues to transform, most recently as a result of trends that emerged in the industry owing to the economic downturn. In more recent years and better economies, analysts and industry insiders tended to emphasize the importance of the top North American datacenter markets of New York, Northern Virginia, Chicago, Silicon Valley, Dallas and Los Angeles, while relegating other major markets to a lesser position as disaster-recovery sites or for less dynamic, more localized SMB customers. Times have changed, however. Beginning in late 2009 and continuing through 2012, we have seen more serious interest in emerging major markets for datacenters in terms of both supply and demand.

3 KEY REPORT FINDINGS A large single provider in each emerging major market: While the 10 emerging major North American markets in this report all have multiple multi-tenant datacenter providers (roughly 16 on average), each market also has a single provider that holds a significant share of that market (in terms of built-out operational space), ranging from 20% to 52%. Markets are underserved but starting to attract interest: As access to capital tightened in late 2008 and throughout 2009, the little capital that was deployed was primarily invested in incremental capacity builds in the top six markets. This resulted in little investment in the emerging major North American markets over the same time period. However, starting in 2010, interest has resumed in these markets, and activity has increased. Utilization beginning to mirror top markets: While utilization in the top six North American markets is quite high at over 80%, despite continued incremental expansions the 10 emerging markets reviewed in this report also have a high utilization rate, of about 76% on average for M&A opportunities available: Given the number of smaller datacenter providers in each market (those with a single facility up to a handful of facilities), increasing utilization of built capacity, the continued lack of access to capital for smaller datacenter providers to expand, and increasing demand in emerging major markets, several of the smaller providers in these markets make attractive acquisition targets for larger providers looking to expand into additional emerging major markets more quickly than by building facilities themselves. NA MTDC SUPPLY: EMERGING MAJOR MARKETS 2012

4 COMPANIES INCLUDED IN THIS REPORT 123Net 365 Main 3z Canada Accelerated Networks Advanced Knowledge Networks Allied Properties REIT Alpheus Communications Amanah Tech American Internet Services Atomic Data Awecomm Bell Canada BHI Advanced Internet Caneris Capris Hosting CDW Berbee Centrilogic CenturyLink CityNAP Cogeco Data Services Cogent Colo 5 ColoDetroit Cologix Colosseum Online Core NAP CoreSite CyrusOne D3 Networks Data Centers Canada Data Foundry Data-Vault DBSi Digital Edge Digital Realty Trust Directlink Technologies Distributed Systems Services Dynaworx E Solutions EasyStreet Online Services Equinix FIBERTOWN Fork Networking FORTRUST Solutions Fortune Data Centers Griffin Partners Handy Networks Hivelocity Honeycomb Internet Services Hosting.com Hostway I2B Networks Implex Infinity Internet Interlink Connectivity Internap Network Services iphouse IPR International Latisys Level 3 Communications Liberty Center One LightPoint Colocation & Hosting Markley Group Massive Networks Montgomery Westland Morgan Reed Group MTS Allstream NaviSite Necessary Resources Negma Business Solutions Network Medics Neutral Data Centers Nexcess Next Level Internet

5 COMPANIES INCLUDED IN THIS REPORT Nugget Networks Online Tech OnRamp OnX Enterprise Solutions Opus Interactive Peak 10 PEER 1 Hosting Philadelphia Technology Park Portland NAP Primus Business Services Priority Colo Q9 Networks Quasar Data Center Quonix Networks Rapid Systems Inc Razor Servers redit Riptide Hosting RockyNet RT Software Systems (RT Software Hosting) Sago Networks SATC Co-Location Services Savvis ScaleMatrix Server Tune ServOnDemand SevenL Networks Sidera Networks Site B Data Services SpireTech Sterling Communications StratITsphere Stream Data Centers SunGard Synergy Broadband Tata Communications TELUS Terremark The Minnesota Gateway Time Warner Cable Travelport tw telecom US Internet Corp US Signal Utropicmedia Velocity Telephone VeriSpace Verizon Verizon Business ViaWest VISI Waveform Technology Windstream Hosted Solutions Xand XO Communications zcolo NA MTDC SUPPLY: EMERGING MAJOR MARKETS 2012

6 TABLE OF CONTENTS INTRODUCTION 1 KEY REPORT FINDINGS METHODOLOGY EMERGING MAJOR MARKET TRENDS 5 NOT JUST FOR DISASTER RECOVERY CORRELATION TO MSA SIZE OR GDP FIGURE 1: Top 50 Metropolitan Areas in North America 6 FIGURE 2: Top 50 Metropolitan Areas in North America by GDP 8 FIGURE 3: Comparing GDP and Population with Emerging Major Datacenter Market Size 9 MARKET OPPORTUNITIES FIGURE 4: Emerging Major Markets Market Share of Market Leader 10 EMERGING MAJOR MARKET PROFILES 12 AUSTIN/SAN ANTONIO FIGURE 5: Multi-Tenant Datacenter Providers Austin/San Antonio 14 FIGURE 6: Multi-Tenant Datacenter Market Share Leaders Austin 15 FIGURE 7: Multi-Tenant Datacenter Map Austin/San Antonio 16 FIGURE 8: Multi-Tenant Datacenter Supply and Demand Austin 17 FIGURE 9: Multi-Tenant Datacenter Utilization Austin 17 FIGURE 10: Multi-Tenant Datacenter Pipeline Austin 18 DENVER FIGURE 11: Multi-Tenant Datacenter Providers Denver 21 FIGURE 12: Multi-Tenant Datacenter Market Share Leaders Denver 22 FIGURE 13: Multi-Tenant Datacenter Map Denver 23 FIGURE 14: Multi-Tenant Datacenter Supply and Demand Denver 24 FIGURE 15: Multi-Tenant Datacenter Utilization Denver 24 FIGURE 16: Multi-Tenant Datacenter Pipeline Denver 25 DETROIT FIGURE 17: Multi-Tenant Datacenter Providers Detroit 28 FIGURE 18: Multi-Tenant Datacenter Market Share Leaders Detroit 29 FIGURE 19: Multi-Tenant Datacenter Map Detroit 30

7 FIGURE 20: Multi-Tenant Datacenter Supply and Demand Detroit 31 FIGURE 21: Multi-Tenant Datacenter Utilization Detroit 31 FIGURE 22: Multi-Tenant Datacenter Pipeline Detroit 32 HOUSTON FIGURE 23: Multi-Tenant Datacenter Providers Houston 34 FIGURE 24: Multi-Tenant Datacenter Market Share Leaders Houston 35 FIGURE 25: Multi-Tenant Datacenter Map Houston 36 FIGURE 26: Multi-Tenant Datacenter Supply and Demand Houston 37 FIGURE 27: Multi-Tenant Datacenter Utilization Houston 37 FIGURE 28: Multi-Tenant Datacenter Pipeline Houston 38 MINNEAPOLIS FIGURE 29: Multi-Tenant Datacenter Providers Minneapolis 41 FIGURE 30: Multi-Tenant Datacenter Market Share Leaders Minneapolis 42 FIGURE 31: Multi-Tenant Datacenter Map Minneapolis/St Paul FIGURE 32: Multi-Tenant Datacenter Supply and Demand Minneapolis 44 FIGURE 33: Multi-Tenant Datacenter Utilization Minneapolis 44 FIGURE 34: Multi-Tenant Datacenter Pipeline Minneapolis 45 PHILADELPHIA FIGURE 35: Multi-Tenant Datacenter Providers Philadelphia 47 FIGURE 36: Multi-Tenant Datacenter Market Share Leaders Philadelphia 48 FIGURE 37: Multi-Tenant Datacenter Map Philadelphia 49 FIGURE 38: Multi-Tenant Datacenter Supply and Demand Philadelphia 50 FIGURE 39: Multi-Tenant Datacenter Utilization Philadelphia 50 FIGURE 40: Multi-Tenant Datacenter Pipeline Philadelphia 51 PORTLAND FIGURE 41: Multi-Tenant Datacenter Providers Portland 54 FIGURE 42: Multi-Tenant Datacenter Market Share Leaders Portland 55 FIGURE 43: Multi-Tenant Datacenter Map Portland FIGURE 44: Multi-Tenant Datacenter Supply and Demand Portland 57 NA MTDC SUPPLY: EMERGING MAJOR MARKETS 2012

8 FIGURE 45: Multi-Tenant Datacenter Utilization Portland 57 FIGURE 46: Multi-Tenant Datacenter Pipeline Portland 58 SAN DIEGO FIGURE 47: Multi-Tenant Datacenter Providers San Diego FIGURE 48: Multi-Tenant Datacenter Market Share Leaders San Diego 61 FIGURE 49: Multi-Tenant Datacenter Map San Diego 62 FIGURE 50: Multi-Tenant Datacenter Supply and Demand San Diego 63 FIGURE 51: Multi-Tenant Datacenter Utilization San Diego 63 FIGURE 52: Multi-Tenant Datacenter Pipeline San Diego 64 TAMPA FIGURE 53: Multi-Tenant Datacenter Providers Tampa 66 FIGURE 54: Multi-Tenant Datacenter Market Share Leaders Tampa 67 FIGURE 55: Multi-Tenant Datacenter Map Tampa 68 FIGURE 56: Multi-Tenant Datacenter Supply and Demand Tampa 69 FIGURE 57: Multi-Tenant Datacenter Utilization Tampa 69 FIGURE 58: Multi-Tenant Datacenter Pipeline Tampa 70 TORONTO FIGURE 59: Multi-Tenant Datacenter Providers Toronto 72 FIGURE 60: Multi-Tenant Datacenter Market Share Leaders Toronto 73 FIGURE 61: Multi-Tenant Datacenter Map Toronto 74 FIGURE 62: Multi-Tenant Datacenter Supply and Demand Toronto 75 FIGURE 63: Multi-Tenant Datacenter Utilization Toronto 75 FIGURE 64: Multi-Tenant Datacenter Pipeline Toronto 76 MULTI-TENANT DATACENTER TAXONOMY 77 MULTI-TENANT DATACENTERS COLOCATION WHOLESALE DATACENTER INTERCONNECTION MANAGED HOSTING

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