Global Colocation Market Trends
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1 Global Colocation Market Trends November 2014 Jon Hjembo TeleGeography
2 Outline What are the core data center markets and how fast are they growing? What markets are emerging as secondary regional hubs? Which operators are investing in these markets? How do colocation prices compare across markets?
3 Core Data Center Markets
4 Footprints vary considerably Retail Colocation Floor Space, 2014!
5 Growth rates often inverse to market size Growth in Gross Retail Colocation Space, CAGR !
6 Mixed views on vacancy and growth Current vacancy rates New York 52 percent Silicon Valley 20 percent Amsterdam 11 percent Near-term growth expectations Amsterdam only 27 percent of operators planning expansions London 50 percent planning expansions
7 Secondary Markets
8 Some secondary hubs much larger than others Retail Colocation Floor Space, 2014!
9 and growth rates vary considerably Growth in Gross Retail Colocation Space, CAGR !
10 Key Operators
11 Biggest players in core European markets Amsterdam Telecity Equinix eunetworks Interxion Level 3 Frankfurt Equinix Interxion Level 3 Telecity ITENOS London Level 3 CenturyLink Equinix Telecity SunGard
12 Biggest players in core North American markets New York Equinix CenturyLink Telx Level 3 Net Data Centers Silicon Valley Equinix Level 3 CenturyLink CoreSite Hurricane Electric Washington Equinix Verizon Terremark Net Data Centers CenturyLink CoreSite
13 Biggest players in core Asian markets Hong Kong NTT Comms Equinix CenturyLink Fujitsu Citic Telecom Singapore Equinix CyrusOne NTT Comms Pacnet Net Data Centers Tokyo NTT Group Bit isle IDC Frontier Equinix ARTERIA
14 Who s deploying lately in core markets?
15 Who s active in secondary markets?
16 Pricing Trends
17 Median prices vary across markets Median Monthly Price per Kilowatt at 4-Kilowatt Density, H1 2014!
18 and even more within each market Range in Monthly Price per Kilowatt at 4-Kilowatt Density, H1 2014!
19 Stark contrasts in cross-connect prices Median Monthly Fiber Cross-Connect Price, H1 2014!
20 but what really counts is the total cost Total Cost of Ownership per Month, Five Cross-Connects, H1 2014!
21 Colo prices steadier than network prices Median Colo Price per KW and 10 GigE Prices, New York, H H1 2014!
22 Prices expected to remain stable Operator Price Expectations by Metro Area, H1 2014!
23 Conclusion Core colocation markets have varying growth rates but continual international investment. Some secondary markets are expanding much faster than others. European colocation markets are typically more price-competitive than American and Asian markets, due to lower connectivity pricing.
24 Jon Hjembo Senior Analyst TeleGeography
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