New data from Synergy Research Group shows that for both wholesale and retail colocation, first-quarter revenue from hyper-scale customers grew more rapidly than revenues from other service provider customers and from enterprises.
According to the announcement, the revenues from hyper-scale operators grew by 22% in the wholesale segment of the market and by 9% in the retail segment, while the overall colocation market grew by 7% in Q1 compared with last year. The data also shows that the total colocation market grew to $9.5 billion in Q1.
APAC was the highest growing region, followed by EMEA and North America. Among the 20 largest country markets, the highest growth rates were achieved in China, South Korea, Brazil, Hong Kong, Japan, Germany, and India. John Dinsdale, a Chief Analyst at Synergy Research Group said,
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“Hyperscale operators continue to grow their revenues at double-digit rates and to maintain capex spend at $30 billion per quarter, the majority of which is targeted at their data center infrastructure. As part of that they rely on colocation providers to lease out both large wholesale facilities and capacity at smaller edge locations. Hyperscale operators continue to become an ever-more important source of business for leading colocation companies such as Equinix, Digital Realty, NTT, CyrusOne, QTS and GDS. This market has remained mostly unaffected by COVID-19.”