Equinix, Digital Realty And NTT Lead Colocation Market
The companies are being helped by an aggressive M&A strategy.
New Q1 data from Synergy Research Group shows that Equinix, Digital Realty, and NTT maintain a strong lead in the colocation market, helped in part by the many acquisitions that they have made. In aggregate the three now control almost 28% of the worldwide market and all have grown their market share over the last four quarters. Equinix and Digital Realty have grown at rates far in excess of the overall market, due to a combination of organic growth and large M&A deals that have closed in the last year. Market leader Equinix had a 13% share of the Q1 market and has subsequently completed two more acquisitions which will help it to further boost its market position in Q2. The closest competitors to the big three are KDDI/Telehouse and China Telecom who both have a 3% market share, followed by a group of operators that each has a 2% share – CyrusOne, Interxion, Cyxtera, Global Switch and Coresite. Across the two major market segments, Equinix had a 17% share of retail colocation, while Digital Realty had a 28% share of the smaller wholesale segment.
The Q1 data, covering both wholesale and retail colocation, shows that the market continues to expand steadily across all regions, with APAC and Latin America having the highest growth rates. When measured in local currencies, the major countries with the highest growth rates are all in the APAC region - China, Hong Kong, Australia, Japan and Singapore. Across the major regions, Equinix was the leader in EMEA and Latin America, ranked second in North America and third in APAC. Digital Realty was the leader in North America and NTT the leader in APAC.