Filling in the blanks. Colocation is booming.

Written by 

Dmitry Tsyplakov

Solution Manager

Every business today is a digital business. In fact, our lives are digital. Between the emergence of remote working, the explosion of ecommerce and the continued developments in advanced technologies (such as AI and machine learning) data systems are in high demand. This in turn means so are data centers. 

The growth in digital demands throughout the pandemic was staggering. According to PGIM, there was a ninefold increase in unique user count on tools such as Microsoft Teams and Zoom. Alongside this there was a 40% annual rise in average broadband usage per household and a 35% jump in the average number of hours of mobile phone usage.

The data center is where all this information is stored, processed and analysed – and it should be of no surprise that space is growing scarce. Estimates vary, but the consensus seems to be that the market is approaching a boom period. 

Taking your white space further

Data centers around the world face increasing challenges, particularly in terms of space, efficiency and profitability. Colocation or second-generation space – typically in established facilities and vacated by a previous tenant – is becoming a more important component of data center real estate. 

In recent years, data center providers have had growing success in re-leasing this space to new tenants, and this will become even more important in markets facing supply constraints. In fact, the data center colocation market in Europe is predicted to expand at a compound annual growth rate (CAGR) of 13.1% from 2021 to 2028, according to analysts at Grand View Research. They also expect the value of the market to reach USD 28. 55 billion by 2027. 

Creating colocation spaces allows businesses to maximise their footprint and to make the most out of existing infrastructures. However, to fully utilise the white space there are two key requirements that must be considered: 

performance: this is top of the list of considerations when offering colocation. Having a wide range of reliable, high-quality connectivity options with excellent optical performance is also vital. 

space: for fiber optic technology it is important to aim for a small footprint and high-density solutions with space efficient chassis and modules, working alongside small diameter cables. 

Data centers of the future 

Colocation spaces are only going to increase as cloud-based solutions become more in demand. As energy costs are a significant chunk of data center operating costs, renting colocation space also helps reduce operating costs and improves carbon footprints. These spaces are the data centers of the future – smaller, efficient, greener and dependable. 

HUBER+SUHNER data center colocation solutions include consultancy services for full project lifecycle support, training and certification programme, alongside expertise in network design and network application, support materials (including app notes), design library, partner portal and much more. Our goal is to help you build your data center on the strongest foundation possible to ensure you have the space, time and ability to reach the next level.