The global multi-tenant wholesale data center market will expand by about 9% a year between 2013 and 2018, according to a new report by analyst TechNavio. 

The five year period of 8.98% compound annual growth is being driven by a growing need for companies across the world to cut capital and operational expenses. 

The emergence of high-density computing equipment – which can cut running costs – has been a contributory factor in favor of the multi-tenant wholesale data center, said The Global Multi-tenant Wholesale Data Center Market 2014-2018 report.

However, the report identifies a number of issues that may slow the growth of the market.

One of the most significant challenges that needs to be addressed, it said, is the increasing complexity of network infrastructure.

As a consequence colocation and multi-tenant services providers now struggle to comply with juggling all their client’s requirements in a single data center facility.

"Enterprises are adopting high-density data center facilities to meet their computing requirements and looking for business solutions that reduce their capital and operational costs,” said Rachel Thompson, senior manager for market research firm Research and Markets.

The report identified the main players in this market as AT&T, Digital Realty Trust, Equinix, Level3 Communications, Rackspace Hosting, Savvis and Verizon Communications.