by Brianna Crandall — July 11, 2016 — According to Technavio’s new market research report, the firm’s analysts predict the global multi-tenant wholesale data center market will grow at a compound annual growth rate (CAGR) of over 13% between 2016 and 2020. The rise in the adoption of containerized data centers is seen as the driving force behind growth in this market.
A containerized data center is a portable data center that is pre-installed in a shipping container. Such data centers are a part of a modular data center in which each module is a container that can host IT (information technology), power, and cooling equipment.
During 2015, the Americas dominated the global multi-tenant wholesale data center market by accounting for almost 47% of the overall market share. The new report presents a breakdown and analysis of the multi-tenant wholesale data center segments based on the type.
According to Rakesh Panda, lead analyst, ICT, Technavio Research:
Recently, there has been an upsurge in the construction of green data centers in the market. This trend is spurred by the increase in carbon emissions and high consumption of electricity by data centers worldwide. Green data centers are integrating concepts such as free cooling, use of renewable energy sources, consolidation, and waste recycling in an attempt to improve their overall performance.
The wholesale data center colocation is a cost-efficient alternate for enterprises that operate an IT load of more than 1 MW. This segment of the market is expected to showcase substantial growth during the forecast period owing to the rising deployment of cloud services, big data, and the Internet of Things (IoT). Enterprises are opting for wholesale colocation in an attempt to minimize the burden of building and operating a data center facility. The majority share of wholesale data center adoption comes from the cloud service providers (CSPs) and global enterprises.
Key vendors
The key vendors in the market include CenturyLink, Digital Realty, Equinix, Global Switch, Level 3 Communications, NTT Communications, and Rackspace. Colocation service vendors possess the expertise required for efficiently managing data centers and troubleshooting the network whenever any problem occurs. The major players in the market are focusing on location and network connectivity to attract more consumers.
Competition in the market is expected to intensify during the forecast period owing to the growing number of collocation centers along with other data center facilities. Vendors in the market are also involved in mergers and acquisitions in order to expand their footprint and meet the rising business demands from across the globe.
A more detailed analysis is available in the Technavio report, Global Multi-tenant Wholesale Data Center Market 2016-2020. The company says it can customize reports by other regions and specific segments upon request.
