The Colocation landscape has changed dramatically over the last 5 years – including massive amounts of facilities building and expanding. If 2020 taught us anything, it’s that businesses must have the ability to pivot. Because of that realization, many organizations are adapting their business models and realizing they are not experts at owning and operating their own data centers which is driving many to migrate to Colocation and cloud providers. In addition to this shift in corporate owned data centers, hyperscale providers are taking massive amounts of space across the globe. Data Center Knowledge captured the evolving global Colo landscape really well in a recent article.

One of the points that I thought was very interesting was talking about the expansion to markets we don’t typically think of as hot beds for Colocation space. In the USA we are used to seeing the traditional areas like Ashburn, Virginia as the primary locations for Colocation growth, but as companies are expanding, additional markets are developing. “More and more people around the world are coming online, and more businesses are transitioning to cloud-based infrastructure. The attention of those making decisions about where hyperscale cloud platforms or Colocation providers should build their data centers next has now shifted to markets they hadn’t looked at in the past.” Yevgeniy Sverdlik, Data Center Knowledge.

There are projections that the Colocation market will add 2,000 MW of space annually over the next 5 years, in markets like Jakarta, Salt Lake City, Osaka, Zurich, Warsaw, and Chennai. While Asia Pacific will continue to grow (China passed North America in terms of data center capacity in 2019 (DCK)), we will see the growth expand outside of China. This is due in large part because of the challenges and restrictions for the hyperscale companies to have space there. Markets like India, Indonesia, Korea and Japan will all see explosive growth over the next few years. For more information, read the full article from Data Center Knowledge.

This article further reinforces the evolving strategic importance of Colocation and cloud environments in today’s mix for organizations around the world. If you would like to see how Siemon can support your data center needs, contact us today.