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Global Multi-Tenant Data Center Market Demand and Status, Future Growth by 2025

Mar 25, 2020 (Daily Market Journal via Comtex) --
Market Overview

The Global Multi-Tenant Data Center Market is expected to register a CAGR of 11.36% during the forecast period (2020 - 2025). Business processes are expanding rapidly, and due to this, there is a surge in demand for data centers resulting in the evolvement of multi-tenant data centers. Multi-tenant data centers cater to multiple clients with a single instance of a software application, with clients having a shared affinity at some level. Demand for multi-tenant data centers is from both cloud providers and enterprises. Multi-tenant data centers allow enterprises to serve clients and end users better.

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- The primary factor driving the growth of multi-tenant data centers is the growing popularity of green data centers. The consumption of electricity and increase in carbon emission by data centers globally is creating awareness among enterprises of green data center facilities. The adoption of software-defined data centers (SDDCs) along with growing internet traffic, will be a driving factor in the multi-tenant data center market during the next few years.
- Some other factors such as continuous upgradation in data centers resulting in obsolescence in existing data centers, increase in demand for IT services, and increased IT spending are driving the growth in multi-tenant data center market. Also, low operational costs, quick response and deployment, and technical advancements in IT are also some important factors resulting in the growth of multi-tenant data centers market.
- The challenges faced by the multi-tenant data centers market include data security concerns and inflexibility of some multi-tenant data centers.
- Digital Realty announced a USD 22 million expansion in Atlanta, a major data center hub. The 250 Williams St. building in Atlanta, also known as the American Cancer Society building, underwent a significant expansion in 2012, making it among the largest multi-tenant data centers in the Southeast.

Scope of the Report

Multi-tenant data centers help enterprises to outsource their IT infrastructure and connect to a wide variety of ISP's securely and dynamically. Third parties operate multi-tenant data centers for the benefit of multiple enterprise tenants. They are also known as colocation data centers. Colocation is a data center facility, where a corporation can rent space for servers and other computing hardware. Data center colocation is used for wholesale colocation and retail colocation.

Key Market Trends

Healthcare Expected to Hold Significant Growth

- The healthcare industry is one of the most diverse and demanding industries. The industry has become heavily dependent on a computing and communications foundation. The healthcare infrastructure handles patients' electronic records, health monitoring, and laboratory systems, plus regular business operations.
- Increasing regulations on data acquisition and records, especially the ones related to clinical trials, are drawing several healthcare clients toward datacenters.
- There are several government initiatives taken up globally, which will further boost the colocation market. For instance, in China, the country's government has pledged to create an industrial scale of medical services by 2020. The rising generation of data in the healthcare sector is driving the requirement of data centers.

Asia-Pacific Expected to Hold Significant Growth

- Multi-tenant data center market is expected to have significant growth in the Asia-Pacific region due to large scale outsourcing of managed hosting services in this region.
- China has witnessed a rise in its hyper-scale platforms, owing to which providing data center services for Chinese hyper-scale platforms have become necessary.
- The high density of colocation is present in Japan, owing to such a generation of data. For instance, Digital Realty has launched its first data center in Japan, named 'Digital Osaka 1', indicating increased investment in the region.
- Singapore is considered as one of the largest shipping ports in the world as it ensures connectivity. The government of Singapore is driving prosperity through economic development and innovation; thereby, Singapore continues to attract significant investments from the technology industry.
- India is one of the fastest-growing economies in the world, and it is likely to boost the growth of public cloud-based data centers. The IT industry dominates the Indian market, as the largest private sector employer in the country, where data centers are widely used, thereby, propelling the market growth.

Competitive Landscape

The multi-tenant data center market is fragmented and consists of a limited number of large-scale data center colocation service providers and numerous small-scale vendors. The increasing number of colocation centers will intensify the level of competition among the players during the forecast period.

- February 2019 - Digital Realty and Ascenty announced that they added dedicated and private access directly to the IBM Cloud in their connectivity portfolio through IBM Cloud Direct Link.
- June 2018 - AT&T sold 31 colocation data center facilities to Brookfield Infrastructure. AT&T received US$1.1 billion from Brookfield. AT&T will subsequently offer it's business customers Evoque's colocation services through AT&T's global colocation ecosystem.
- February 2018 - Equinix acquired Infomart Dallas Colocation Data Center, including its operations and tenants, from ASB Real Estate Investments, in a USD 800 million debt and cash transaction.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support

Companies Mentioned:
- CenturyLink Inc.
- Equinix Inc.
- Global Switch Ltd.
- NTT Communications Corporation
- Rackspace Inc.
- Internap Corporation
- Ascenty S.A.
- CentriLogic Inc.
- AT&T Inc.
- IBM Corporation

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Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study



4.1 Market Overview
4.2 Industry Value Chain / Supply Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of Substitute Products
4.3.4 Threat of New Entrants
4.3.5 Intensity of Competitive Rivalry

5.1 Market Drivers
5.1.1 Increased Demand For Green Data Centers
5.1.2 Growing Internet Data Traffic
5.2 Market Restraints
5.2.1 Consolidation of Data Centers
5.2.2 Data Security Concerns

6.1 By Solution Type
6.1.1 Retail Colocation
6.1.2 Wholesale Colocation
6.2 By Application
6.2.1 Public Cloud
6.2.2 Private Cloud
6.3 By End-user Industry
6.3.1 IT & Telecom
6.3.2 Healthcare
6.3.3 Defense
6.3.4 Manufacturing
6.3.5 Retail
6.3.6 Other End-user Industries
6.4 Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia-Pacific
6.4.4 Latin America
6.4.5 Middle East & Africa

7.1 Company Profiles
7.1.1 CenturyLink Inc.
7.1.2 Equinix Inc.
7.1.3 Global Switch Ltd.
7.1.4 NTT Communications Corporation
7.1.5 Rackspace Inc.
7.1.6 Internap Corporation
7.1.7 Ascenty S.A.
7.1.8 CentriLogic Inc.
7.1.9 AT&T Inc.
7.1.10 IBM Corporation



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