Story image

APAC colocation market hits US$9b; Equinix, Digital Realty retain global leadership

24 Jan 2017

The Asia Pacific data centre colocation market netted nearly US$9 billion in the third quarter of 2016, according to a new report which says growing interest in Asia is expected over the next 12 to 24 months.

451 Research says global colocation and wholesale market’s annualised revenue hit $28.9 billion for the quarter, with 42% of that generated in North America, and 31% in Asia Pacific.

The information technology research and advisory company is forecasting revenues to top $48 billion by 2021.

Leika Kawasaki, 451 Research data center initiatives senior analyst, says growth in the market is coming not only in many of the main markets, but increasingly in ‘edge’ markets, outside of the global top 20.

“Over the next one to two years, we expect to see growing interest from top providers and investors in markets outside of the top 20, particularly in Asia and Latin America,” Kawasaki says.

Equinix and Digital Realty remained the global leaders, according to 451 Research, which tracks nearly 4500 data centres operated by 1193 companies worldwide.

The company says Equinix held 9.5% of annualised colocation and wholesale revenue, with Digital Realty holding 5.7%. However, Equinix’s proposed acquisition of Verizon’s data center business, which is expected to close in mid-2017, will see Equinix’s share jump to 11.4% of the market – double that of its nearest competitor.

The figures for Q3 show China Telecom holding 3.3% share with CenturyLInk on 2.2% and China Unicom on 2.1%. Verizon and Dupont Fabros Technology, both on 1.9%; Level 3 Communications (1.8%), Cyrusone (1.7%) and Interxion on 1.6% round out the top 10.

However, those top 10 are dwarfed by the ‘other’ category, which accounted for 68.4% of annualised revenue in Q3.

Silicon Valley to lose its tech centre crown to global cities
A new survey of tech industry leaders found the majority believe it is likely the Valley will be usurped within four years by other cities around the world.
Hybrid cloud set to mitigate vendor lock-in within Thailand
IDC has released its top 10 predictions for Thailand's IT industry through to 2022.
French cloud giant sets up shop in two APAC data centres
OVH Infrastructure has expanded its public cloud services in the Asia Pacific (APAC) market operating from two data centres within the region.
SecOps: Clear opportunities for powerful collaboration
If there’s one thing security and IT ops professionals should do this year, the words ‘team up’ should be top priority.
Data center colocation market to hit $90b in next five years
As data center services grow in popularity across enterprises large and small, the colocation market is seeing the benefits in market size.
Google doubles down on hybrid cloud strategy
CSP is a platform that aims to simplify building, running, and managing services both on-premise and in the cloud.
OVH launches public cloud down under
OVH Public Cloud services is expanding to Australia out of two data centres - one in Sydney and one in Singapore.
Huawei invests in cloud deployment for Singapore
The company says its new strategic investment reflects growing demand for cloud service solutions across Asia Pacific.