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2020: Global Data Centre Colocation & Interconnection Report

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The global data centre colocation and interconnection (DCI) market continues to move forward and is estimated to be worth USD $53.9b in 2020, a figure that represents 11.9% y/y growth. The story for 2021, despite the pandemic environment, is expected to be similar, with the market projected to grow 11.7% y/y to $60.2b. The five-year CAGR for the 2020-25 period is expected to come in at 11.4% and speaks to the overall stability and consistency of the sector. In 2025, this market is on track to be worth $92.4b.

Within this market, there are segments that are showing increasingly divergent trajectories. This is a market now dominated by the hyperscale category and the split between retail and hyperscale, from a market value perspective, is now 36% (retail) and 64% (hyperscale). In terms of the five-year CAGR, retail colocation is expected to clock in at 7.7% and hyperscale 16.9%. Meanwhile, interconnection continues to drive value for data centre operators as the primary layer of value-add. This market (included within the overall DCI numbers) is tracking to $2.5b in 2020 with a five-year CAGR of 10%. In 2025, if current trends hold, this market will be worth $4b on a global basis.

This report also includes global data centre colocation inventory on a MW basis. According to Structure Research estimates, the global data centre market will have built out 16.7 Gigawatts of total capacity in 2020. This figure is broken down between four major regions: APAC, North America, EMEA and Latin America. We also include inventory estimates (on a MW basis) for major markets in all four regions along with a maturity index that maps out current and emerging markets. Finally, a summary of regional market trends and M&A transactions is provided.

The data centre colocation market continues to develop on a global basis and our 2020 refresh reflects deeper insights into markets in the top tier and better visibility into all corners of this global market. Our more granular view of the market, combined with the explosive growth of hyperscale cloud and the appetite for interconnection to those clouds, has pushed our aggregate numbers up and speak to the long-term health of this category. The pandemic environment has only reinforced the outlook for data centre colocation and interconnection and in the coming years, favourable tailwinds around digital transformation and the emergence of edge and interconnection, have a good chance of continually raising the bar.

This report remains the most comprehensive dataset on the global data centre colocation market and an indispensable resource for any service provider, investor or end user looking to understand and project the future of the market or find a service provider.

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