Major Influencers That Are Helping Colocation Data Centers Grow

colocation data centers

Thanks to the increased adoption of modern technological solutions, the demand for colocation data centers continue to grow. The global colocation market is expected to expand at an annual growth rate of over 15%, from 2016 to 2020. What’s more, an increasing number of businesses are choosing to switch to cloud-based services. That’s why, you can anticipate more organizations to opt for storage solutions that are offered by cost-efficient and highly scalable data centers. With that in mind, let’s find out more about the major influencers that are helping the colocation industry grow:


As more self-sufficient data centers rise to the surface, the age-old power problem is starting to solve itself. Energy consumption has, for some time, been an issue that many data center operators and owners faced. What’s more, an increasing number of data centers are being built in places that have a lack of reliable sources of electricity. Hence, potential data center owners need to start getting creative, i.e. start producing energy on their own.

Next, mobile devices have changed the way people interact with data, websites, applications, and etc. That’s why the data center is needed to be relatively close to where they are. After all, latency is a major adversary of good performance. While the majority of such data centers may be edge or micro data centers, one should still think about how to provide adequate power to them. It is about time that you grasp the concept of self-sufficient micro-grids and data centers. More thought must be given to energy storage, e.g. electrical battery technology.

Mobile Device Usage

The speed at which consumers are adopting mobile devices is simply astounding. It is estimated that over one billion more individuals will be users of mobile phones by 2020. This will be happening predominantly in Asia, and countries such as China and India will be leading the charge. In addition, about 10 countries are expected to account for that growth. If 100 million or 150 million new subscribers were to come online annually, you should not be surprised at all!

Being connected has become increasingly important for many consumers. For example, as Indian nationals progress from lower to middle class, they may opt for a mobile phone before even getting appliances such as a fridge or air conditioning system. With increasing mobile device usage, one needs to set up more data traversing wireless networks as well. These networks will eventually land in a data center. That’s why large scale cloud infrastructures are required, and massive amounts of data will be transmitted back and forth in the near future.

Software Defined Networking (SDN)

A trend that will gain major traction in the data center colocation market is the increased implementation of software defined networking, or SDN. More colocation providers are expected to hop on the bandwagon in the coming years. The reason is that providers who choose to implement SDN can enjoy a variety of benefits including ease of allocating bandwidth on demand across their networks, combat network issues, accelerate provisioning, and lower hardware costs. Network traffic is growing as we speak. This fact is also driving the need for SDN implementation for both hyper-scale and carrier-neutral colocation facilities.