Report: Interconnection Helping To Drive 4.7% Multi-Tenant Data Center Revenue Growth In Q2 2015
Accounting for currency effects, growth is much higher given that the weakening Euro dragged on revenue in EMEA.
According to a recent report by IHS, global multi-tenant data center (MTDC) revenues grew 4.7%, as measured in USD, in Q2 of 2015 compared to the same quarter of 2014. Accounting for currency effects, growth is much higher given that the weakening Euro dragged on revenue in EMEA. However, if assessing the market in terms of space added, which grew by 90,000 square meters in just one quarter, it is quite clear that the MTDC market is a fast paced one with strong potential for future growth.
Helping to drive movement to colocations is the opportunity for interconnection, or cross-connects, among tenants. This is where physical cables are used to make direct connections between different customers and/or carriers within a data center. This reduces latency and costs given that communication does not have to go through an outside Internet Service Provider (ISP). IHS currently estimates that slightly under 10% of all multi-tenant data center revenue comes from cross-connect fees.