Continued Expansion Projected for North American Data Center Market

Mike Allen
July 08, 2012

"As big data continues to accumulate, more businesses look to leverage analytic tools and data center services in order to assist in the management of fast-growing, valuable information. As far as big data goes, its effectiveness is only as good as that of its support system, and more companies are turning to hosted solutions to better store, share and secure their data. According to a recent report from Research and Markets, this strong need for data center services is fostering sustained market growth over the next several years. The report specifically projected that the North American market for data center solutions will expand at a 13.36 compound annual growth rate between 2012 and 2016.

Two converging factors are the driving forces behind the market growth, the report stated. Organizations are making a concerted effort to slim down, trimming off the weight of ballooning capital and operational expenses and seeking ways to maintain agile business models. Hosting data and IT infrastructure on site is becoming a burden for developing future growth, and is furthermore a costly effort that only promises to get more expensive. Organizations can immediately address thinning margins in a big way by integrating offsite data storage and virtual private servers.

Additionally, colocation prices are decreasing across the region, as data center colocation and cloud hosting providers refine their own business models and expand their reach. More colocation vendors increase market competition and inspire others to step up their pace for innovation. As technology continues to rapidly evolve, it is imperative for businesses not to skimp on data solutions and related services such as business continuity, disaster planning and data security.

The State of US Data Center Colocation
Another recent report, from commercial real estate firm CBRE, examined trends regarding the placement and utilization of data centers in America and Canada. The report followed 20 data center transactions in the first half of 2013 with a combined value of $275 million. The top wholesale data center markets are Northern Virginia, Atlanta, Chicago, Dallas, Phoenix and the Silicon Valley. Currently, Atlanta, Northern Virginia and the Silicon Valley have the most available data center capacity for businesses to occupy. Healthcare, financial services and insurance are the top three vertical sectors that augmented their existing business models with colocation hosting services.

The report also found that market growth is driven by companies taking the plunge faster than they used to. As more organizations utilize colocation services to sharpen their business models, others are likely to enter the market."



    Mike Allen

    "As big data continues to accumulate, more businesses look to leverage analytic tools and data center services in order to assist in the management of fast-growing, valuable information. As far as big data goes, its effectiveness is only as good as that of its support system, and more companies are ...

    Talk to an Expert

    Manager

    Jamie Timmerwilke

    Global Account Manager
    Datacenters.com

    or send us a message

    +1
    ×

    Categories