Equinix, Digital Realty, And NTT Extend Colocation Leadership In 2016
The three companies in aggregate grew their colocation revenues by 28%.
New 2016 data from Synergy Research Group shows that revenue growth for the world’s three leading colocation operators far outstripped overall market growth in the year, thanks to a combination of major acquisitions and organic growth. While the total colocation market grew 9% from the previous year, Equinix, Digital Realty, and NTT in aggregate grew their colocation revenues by 28% and increased their share of the worldwide market. Beyond these three companies, the other top ten operators grew their colocation revenues by 12% while the companies ranked 11-20 grew by 8%. Apart from the three market leaders, other companies whose growth rates were well above average and who climbed the rankings included QTS, CyrusOne, CoreSite, China Telecom and KDDI-Telehouse. Consolidation will continue to be a major feature of the market, as evidenced by the recent announcement that Equinix is acquiring 29 data centers from Verizon, which is ranked second in the U.S. retail colocation market.