Colocation competition varies by region and market maturity

19 Mar 2013

While a handful of international operators top TeleGeography’s global colocation provider rankings, things often look quite different at the local level. New data from our Colocation Database reveal that the competitive mix of colocation markets varies greatly by region and maturity level.

Local providers play a major role in colocation provisioning in Asia. For example, in Tokyo, local data center provider KVH accounts for more capacity than international operators Equinix and TELEHOUSE combined, with over 422,000 square feet of gross floor space. Similarly, HKCOLO’s 410,000 square feet of space in Hong Kong is not far behind market leader Equinix’s 510,000 square feet.

Competition in European cities includes a mix of local, regional, and international operators. Regional operator TelecityGroup and global behemoth Equinix make up two of the top three providers by floor space in London, Frankfurt, and Amsterdam, with a total of one and two million square feet of colocation capacity, respectively. However, local operators also play a role in these markets. ITENOS is the third-largest provider in Frankfurt, with over 129,000 square feet of gross floor space, while EvoSwitch owns more than 102,000 square feet of capacity in Amsterdam.

US-based international providers dominate the North American colocation market. With over 4.3 million square feet, Equinix is by far the largest operator, taking the top spot in hub markets including Chicago, New York, Washington, and San Francisco. SAVVIS and Level 3 follow, with 2.5 million square feet of space each.

While the mix of local and international colocation providers varies in more established markets, local providers are leading the way in emerging markets around the world. For example, LinxTelecom and CE colo have ventured into eastern European markets like Warsaw, Prague, and Moscow. Larger providers have left the region mostly untouched with the exception of TELEHOUSE, which partnered with local provider Dataspace to develop a site in Moscow in 2012. Likewise, while Johannesburg is emerging as a communications hub for Africa, the market is dominated by local operators Business Connexion, Internet Solutions Data Centres (ISDC), and Teraco. While TELEHOUSE maintains a facility in the data center of local provider Teraco, other international players have yet to enter.

‘International colocation operators maintain an expansive presence around the world,’ said TeleGeography analyst Jon Hjembo. ‘But local operators wield significant influence in shaping individual markets.’

TeleGeography’s Colocation Database is a comprehensive online guide to colocation service providers and sites around the world.

To speak with an analyst, please call +1-202-741-0042 or email