Colocation Capacity Struggles to Keep Up with Demand

October 13, 2010

New data from TeleGeography’s Colocation Database reveal that colocation service providers are struggling to keep up with demand. Despite significant new construction, colocation site capacity is more constrained in 2010 than it was in 2009. More than 41 percent of sites surveyed by TeleGeography were at least 80 percent full at mid-2010, up from 34 percent of sites a year earlier.

Average Colocation Space Available in Major Cities

A combination of established and emerging colocation operators has invested heavily in new development in the last two years. Equinix alone has added more than 1 million gross square feet of new colocation site space and more than 42 megawatts of colocation power capacity since September 2008. These numbers represent newly built capacity and do not reflect the company’s acquisition of Switch and Data. TelecityGroup, the CSF Group, and Internap have also recently completed significant development, each with well over 100,000 square feet of new space. TelecityGroup has added 22 megawatts of new power capacity to its sites over the past two years.

Capacity expansion and demand are particularly strong in established major colocation markets. In Europe, operators have invested heavily in new facilities in London, Frankfurt, and Paris, while in the U.S., they have deployed most of their new capacity in the San Francisco, Washington, and New York metropolitan areas. Despite the new development, average colocation space and power availability in cities such as London, Washington, and San Francisco has persistently remained at 25 percent or less.

“Operators surveyed by TeleGeography had less space available at mid-year 2010 than they did a year earlier, even though they added 1.5 million square feet of new colo space and 124 megawatts of power during those 12 months. While a fair amount of space remains available, demand has been outstripping supply,” observed TeleGeography analyst Jon Hjembo.

The Colocation Database is TeleGeography’s comprehensive online guide to colocation service providers and sites around the world. To download the executive summary and to view product samples, please visit: http://www.telegeography.com/research-services/colocation-database/.

For press inquiries, please email Stephan Beckert at sbeckert@telegeography.com or call +1-202-741-0042.