A new report by Tier1 Research finds that the global multi-tenant Internet data center market has shown remarkable growth in the past 12 months. While data center demand is up 12.53% on a global basis, supply has only increased by 4.23% - contributing to an already lopsided supply/demand curve but benefiting data center operators. These findings are contained in a report released by Tier1 Research (T1R), an independent research firm that analyzes the financial and industry implications of developments affecting public and private companies within the IT, communications and Internet sectors.
"The shared tenant data center market is red hot," said Daniel Golding, vice president and senior analyst at T1R and lead author of the report. "North America, for example, is seeing continued and strong data center demand, particularly in hot markets such as Silicon Valley, Northern Virginia (near Washington, DC), New York, Northern New Jersey, Dallas and Chicago. North American data center demand is up an incredible 14.67% in the last twelve months."
Data center demand drivers include growth in Internet content sites (including content delivery networks), the need for enterprises to maintain business continuity (largely driven by Hurricane Katrina and Sarbanes-Oxley) and ever-increasing needs for power and cooling in the face of modern computing equipment that obsoletes many existing single-user data centers. North American supply is up 6.49%, representing the first surge of data center building and expansion since demand started to pick up during 2005.
"While demand for outsourced data center space has been steady or increasing, data center construction has lagged behind. This trend - demand outpacing supply - is expected to continue through 2009," said Golding.
This 43-page report, titled 'Internet Data center Supply Report: Midyear 2007,' is an in-depth, competitive analysis of the Internet data center market. The report provides financial professionals, executives, prospective customers, colocation and hosting providers, and real estate and planning professionals with an overview of the Internet data center market. The report includes a detailed analysis of data center availability, utilization, supply, demand and quality broken down by providers and geographies. It also includes an overview of new data center construction during the next 18 months, as well as an in-depth discussion of the trends and dynamics impacting shared data center construction.
Additional findings covered in this report include:
┬À Premium facilities are in greatest demand in the top data center markets, as compared to
standard facilities in the same markets, since they
tend to be newer, larger and more reliable.
┬À Europe has been experiencing tremendous growth in multi-tenant data centers. Specifically, four
cities have shown rapid growth over the past 12 months. London, first and foremost, may be the
world's hottest data center market. Paris is also a very popular market, as are Frankfurt and
Amsterdam. Growth drivers are similar to those found in North America - rapid Internet growth
caused by IP video and content delivery, enterprise requirements driven by regulatory and
disaster-recovery concerns, and generally strong economic growth in most markets.
┬À Data center construction is beginning to ramp up, for the first time since the 'telecom boom'
ended.
Key companies covered
The report covers key public and private companies in the Internet data center sector, including: 365Main, ACS, Acxiom, AT&T;, BT Ignite, Cable & Wireless, Cogent, Colt Telecom, Digital Realty Trust, EDS, Equinix, Global Switch, iAdvantage, Internap, Interxion, IXEurope, Japan Telecom Softbank, Level 3, Navisite, NTT, Quality Technology Services, Qwest, Sabey Data center, Savvis, SingTel EXPAN, SunGard, Switch & Data, Telecity RedBus, Telehouse Europe, Terremark, Vericenter, Verizon and ViaWest.
Report orders
To learn more about this report, visit www.t1r.com or contact Dan Ephraim, Vice President, Business Development with Tier1 Research, at 212-505-3030 x 122 or at [email protected].