Global Data Centre Colocation & Interconnection Report

Executive Summary

The global data centre colocation and interconnection (DCI) market continues to track along a forward growth trajectory and is estimated to be worth US$39b in 2018 and to grow at a rate of 10.4% to US$44b in 2019. On a five-year CAGR basis (2019-2024), the market is projected to grow 10% and will be worth US$70b in 2024.  

Retail colocation, on a global basis, accounts for 68% of this market and is estimated to be worth US$27b in 2018 and projected to grow 7% to US$29b in 2019. Also on a global basis, wholesale colocation takes up the remaining 32% of the market and is estimated to be worth US$13b in 2018 and expected to grow 17% to US$15b in 2019. On a five-year CAGR basis, retail colocation is projected to grow at 6% and wholesale colocation at 16%.

In this latest version of this report, we have added data centre inventory counts on a MW and sqft basis. The global colocation market is estimated to have 13 Gigawatts (104 million sqft) of total capacity. This report also provides estimates for the nascent, but increasingly strategic interconnection market. Interconnection revenue on a global basis is estimated to come in at US$1.9b in 2018 and projected to grow 8% to US$2.1b in 2019.

All of the metrics in this report are split on a regional and primary market basis and give the reader a detailed picture of the value, size and growth trajectory of any given data centre market in the world.

On top of the regional and segment splits, this report further distinguishes between the respective segments based on customer classification. Wholesale colocation is recognized as either hyperscale and non-hyperscale, while retail colocation is identified as coming from carrier-neutral providers, network-oriented providers or system integrator-oriented providers.

The many new metrics and splits presented in this report reflect the ongoing changes taking place in the market. Hyperscale has created a new category and accelerated the strategic importance of interconnection and carrier-neutrality. Hyperscale has also played a big role in making the data centre business a global one. This is not just about market presence, but being strategically positioned and in close proximity to ecosystems where there is network density and convenient on-ramps to hyperscale clouds. With the global requirements of hyperscale in mind, operators around the world are seeding partnerships and joint ventures, while doubling down on M&A. And all these dynamics are playing out in the numbers. Retail colocation is still growing, but starting to trend down in a number of mature markets, and interconnection is showing accelerating growth as it moves towards being a very meaningful revenue stream for operators.

This report has added several layers of analysis from its previous version and measures and projects the size, inventory and growth trajectory of the global data centre colocation and interconnection market. The market is analyzed in aggregate and then split into the relevant segments and geographies. This is the most comprehensive report available and an indispensable resource for any service provider, investor or end user looking to understand and project the future of the market or find a service provider.