How Cloud is Changing the Colocation Data Center Market

Hyperscale cloud providers are sucking more and more customer workloads away from data center providers, while gobbling up more and more data center capacity to host those workloads, changing in a big way the dynamics in the global colocation data center market.

One big result is that growth in retail colocation is slowing, while growth in the wholesale data center market is accelerating, according to the latest report by Structure Research. The analysts project a growth rate of 14.3 percent for retail colocation from 2016 to 2017 and 17.9 percent for wholesale; retail colocation services currently have 75 percent market share, with wholesale responsible for the rest.

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