North American Multi-Tenant Datacenter Supply: Top Markets – 2011

DECEMBER 2011

451 RESEARCH: DATACENTER© 2011 THE 451 GROUP, 451 RESEARCH AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

NORTH AMERICAN MULTI-TENANT DATACENTER SUPPLYTOP MARKETS – 2011

DATACENTER

TIER1 RESEARCH: DATACENTER © 2011 THE 451 GROUP, 451 RESEARCH AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

REPORT SNAPSHOTTITLE North American Multi-Tenant Datacenter Supply:

Top Markets – 2011

ANALYST Jeff Paschke, Research Manager, Datacenters Rick Kurtzbein, Research Analyst, Datacenters Michael Levy, Associate Analyst, Datacenters Kelly Morgan, Senior Equity Analyst Stefanie Beaubien, Research Associate, Datacenters

RELEASE DATE December 2011

LENGTH 89 pages

ABOUT THIS REPORTThe North American Multi-Tenant Datacenter Supply: Top Markets 2011 report gives

readers an overview of the top 10 datacenter markets in North America, while providing

actionable metrics around geographies and specific providers.

In this report, ‘multi-tenant datacenters’ are considered multi-customer colocation and

wholesale facilities. Single-user enterprise datacenters and single-tenant datacenters are

specifically excluded from this analysis.

Tier1 Research has historically published a biannual review of supply/demand in the

top six markets in North America. Our intention is to now research and publish two

supply/demand reports annually looking at the multi-tenant datacenter markets in

North America: one that focuses on the top 10 markets and a second report that looks at

emerging major markets. We will also publish a third report annually that examines at

the supply/demand situation in the top multi-tenant datacenter markets in the EMEA and

Asia-Pacific regions of the world.

This report provides current supply, demand and utilization metrics, as well as market-

specific analysis similar to Tier1 Research’s previous supply report series. This report goes

further than our previous look at the top six North American markets, as we now size

each market by existing supply levels, include maps of datacenter locations and identify

all providers as well as identify the top three datacenter providers in each market.

NA MTDC: TOP MARKETS – 2011© 2011 THE 451 GROUP, 451 RESEARCH AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

COMPANIES INCLUDED IN THIS REPORT

#1 Colocation Services

[2N+1]

2020 Live Oak Street MCF

360 TCS

Access Northeast

Adhost

Adtaq Internet

AiNet

Alchemy Communications

Alpheus Communications

American Internet Services

(AIS)

ancotel

Another 9

Aperisys

Arbinet

ASB Capital Management

Ascent (Ascent Data

Centers)

AT&T

Atjeu Hosting

Atlanta NAP

Atlantic Metro

Communications

Bay Area Internet

Solutions

BitPusher

Bothell Data Services

BroadRiver

Capital Internet

Carpathia Hosting

CenturyLink

Cervalis

ClearData International

Clearview Communications

Clise Properties

CNS Colo

Codero

Cogent Communications

Colo4

ColocateUSA

Colocation America

ColoCenters

Cologix

ColoGuard

ColoGuys

ColoServe

ColoSpace

ColoUnlimited

Consonus

Continuity Centers

Continuum Data Centers

CoreLink Data Centers

CoreSite

CoreXchange

Corporate Colocation

Cortland Communications

Cutthroat Communications

Cyber Development Group

International

Cyber Wurx

CyberTrails

Cyberverse

CyrusOne

Dallas Data Center

DataBank

Datapipe

DCI Technology Partners

Digital Realty Trust

digital.forest

DigitalOutrage

DLS Internet Services

Downtown Colo

DuPont Fabros

EC Suite

EGI Hosting

Enotch Networks

Ensynch


Enterhost

Equinix

Evocative Inc

Excalibur Technology

Expedient Communications

Experis Data Centers

Facility Gateway

Corporation

Fast PC Networks

FastServ Networks

FDCServers

FiberCloud

FiberMedia Group

Fisher Communications

Fogo Data Centers

Fortune Data Centers

Future Hosting

GigeNET

Global Crossing

Global IP Networks Inc

Global Net Access (GNAX)

Gotham Bus

Granite Block Global Data

Center

H5 Colo

HopOne Internet

Hosting.com

Hostway Corporation

Hqhost.net

Hurricane Electric Internet

Services

InfoRelay

Integra Telecom

Internap Network Services

InterServer

IO

ISOMEDIA

ISWest

IX2 Networks

KD-web

Latisys

Layer42 Networks

Level 3 Communications

Lightower Fiber Networks

Limestone Networks

Lincoln Rackhouse

Markley Group

Metanet

mindSHIFT Technologies

Multipoint International

Natcoweb

NationalNet

NaviSite

NeoSpire

Net Access Corporation

Net2EZ

NetRiver

NetSource Communications

New Jersey Colocation

NTT

NTT America

NTT Communications

One Communications

Optic Fusion

OPUS-3

PAETEC

Peak 10

PEER 1 Hosting

Pegasus Solutions

Pelio and Associates

Phoenix NAP

Power Loft

Primus

Telecommunications

ProHosting

PureGig Holdings



Quadrant Data Systems

Quality Technology

Services

RagingWire Enterprise

Solutions

Sabey Corp

Saddleback

Communications

Sago Networks

Savvis

Secured Network Services

Sentinel Data Centers

Server Farm Realty

ServerCentral

ServerPhase

Sidera Networks

Silicon Valley Colocation

Silicon Valley Telecom &

Internet Exchange

SiteSouth

SmarttNet

SMH Colocation

Solutrix

Sprocket Networks

Steadfast Networks

Stream Data Centers

SunGard

SunGard Availability

Services

Superb Internet Corp

Tata Communications

Telehouse America

Telx

Terremark

The New York Internet

Company

Thorn Communications

Threshold Communications

TierPoint

Tulip Systems

TULIX Systems

tw telecom

U.S. Colocation Services

Ubiquity Servers

United Layer

US Signal

Vantage Data Centers

Vastnet

Vazata

Velocity Networks

Verizon Business

ViaWest

VirtuStream

Voxel dot Net

Waymark Communications

Webair

WebNX Internet Services

Westplan Investors

Windstream

Communications

Worknet Inc

WORLDLINK Internet

Services

Xand

Xilogix

XNet Information Systems

XO Communications

YourNet Connection

zColo



TABLE OF CONTENTS

INTRODUCTION 1

KEY REPORT FINDINGS . . . . . . . . . . . . . . . . . . . . . . 1

METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . 2

MULTI-TENANT DATACENTER TAXONOMY 5

MULTI-TENANT DATACENTERS . . . . . . . . . . . . . . . . . . . 5

COLOCATION . . . . . . . . . . . . . . . . . . . . . . . . . . 5

WHOLESALE DATACENTER . . . . . . . . . . . . . . . . . . . . . 6

INTERCONNECTION . . . . . . . . . . . . . . . . . . . . . . . . 6

MANAGED HOSTING . . . . . . . . . . . . . . . . . . . . . . . 6

MAJOR MARKET TRENDS 8

NO SIGNS OF OVERSUPPLY – MTDC FUNDAMENTALS STRONG . . . . . . . 8

CORRELATION TO MSA SIZE OR GDP? . . . . . . . . . . . . . . . . . 9

FIGURE 1: Top 35 Metropolitan Areas in North America 10

FIGURE 2: Top 35 Metropolitan Areas in North America by GDP 11

FIGURE 3: Comparing GDP and Population to Top Datacenter Market Size 12

MARKET OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . 13

FIGURE 4: MTDC Major Markets – Market Share of Market Leader 13

MAJOR MARKET PROFILES 14

SAN FRANCISCO/SILICON VALLEY . . . . . . . . . . . . . . . . . . 14

FIGURE 5: MTDC Providers – San Francisco/Silicon Valley 16

FIGURE 6: MTDC Market Share Leaders – San Francisco/Silicon Valley 17

FIGURE 7: MTDC Map – Silicon Valley 18

FIGURE 8: MTDC Map – Sunnyvale/Santa Clara 19

FIGURE 9: MTDC Map – San Francisco/Oakland 20

FIGURE 10: MTDC Supply and Demand – San Francisco/Silicon Valley 21

FIGURE 11: MTDC Utilization – San Francisco/Silicon Valley 21

FIGURE 12: MTDC Pipeline – San Francisco/Silicon Valley 22

NEW YORK CITY METRO . . . . . . . . . . . . . . . . . . . . . . 23

FIGURE 13: MTDC Providers – NYC Metro 25

FIGURE 14: MTDC Market Share Leaders – NYC Metro 26

FIGURE 15: MTDC Map – NYC Metro – Greater NYC Area 28


FIGURE 16: MTDC Map – NYC Metro – Downtown Manhattan

and Jersey City 29

FIGURE 17: MTDC Map – NYC Metro – Midtown Manhattan 30

FIGURE 18: MTDC Map – NYC Metro – Westchester County 31

FIGURE 19: MTDC Map – NYC Metro – Hudson and Bergen Counties 32

FIGURE 20: MTDC Supply and Demand – NYC 33

FIGURE 21: MTDC Utilization – NYC 33

FIGURE 22: MTDC Pipeline – NYC Metro 34

NORTHERN VIRGINIA . . . . . . . . . . . . . . . . . . . . . . . 35

FIGURE 23: MTDC Providers – Northern Virginia 36

FIGURE 24: MTDC Market Share Leaders – Northern Virginia 37

FIGURE 25: MTDC Map – Greater Washington DC Area 38

FIGURE 26: MTDC Map – Northern Virginia – Loudoun County 39

FIGURE 27: MTDC Map – Northern Virginia – Reston,

Sterling and Herndon 40

FIGURE 28: MTDC Map – Northern Virginia – Vienna, McLean

and Falls Church 41

FIGURE 29: MTDC Supply and Demand – Northern Virginia 42

FIGURE 30: MTDC Utilization – Northern Virginia 42

FIGURE 31: MTDC Pipeline – Northern Virginia 43

DALLAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

FIGURE 32: MTDC Providers – Dallas 45

FIGURE 33: MTDC Market Share Leaders – Dallas 46

FIGURE 34: MTDC Map – Dallas Suburbs 47

FIGURE 35: MTDC Map – Dallas Downtown 48

FIGURE 36: MTDC Supply and Demand – Dallas 49

FIGURE 37: MTDC Utilization – Dallas 49

FIGURE 38: MTDC Pipeline – Dallas 50

LOS ANGELES . . . . . . . . . . . . . . . . . . . . . . . . . . 51

FIGURE 39: MTDC Providers – Los Angeles 52

FIGURE 40: MTDC Market Share Leaders – Los Angeles 53

FIGURE 41: MTDC Map – Los Angeles Suburbs 54

FIGURE 42: MTDC Map – Los Angeles Downtown 55

FIGURE 43: MTDC Map – Orange County 56


FIGURE 44: MTDC Supply and Demand – Los Angeles 57

FIGURE 45: MTDC Utilization – Los Angeles 57

FIGURE 46: MTDC Pipeline – Los Angeles 58

CHICAGO . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

FIGURE 47: MTDC Providers – Chicago 60

FIGURE 48: MTDC Market Share Leaders – Chicago 61

FIGURE 49: MTDC Map – Chicago Suburbs 62

FIGURE 50: MTDC Map – Chicago Downtown 63

FIGURE 51: MTDC Supply and Demand – Chicago 64

FIGURE 52: MTDC Utilization – Chicago 64

FIGURE 53: MTDC Pipeline – Chicago 65

ATLANTA. . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

FIGURE 54: MTDC Providers – Atlanta 67

FIGURE 55: MTDC Market Share Leaders – Atlanta 68

FIGURE 56: MTDC Map – Atlanta 69

FIGURE 57: MTDC Supply and Demand – Atlanta 70

FIGURE 58: MTDC Utilization – Atlanta 70

FIGURE 59: MTDC Pipeline – Atlanta 71

SEATTLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

FIGURE 60: MTDC Providers – Seattle 73

FIGURE 61: MTDC Market Share Leaders – Seattle 74

FIGURE 62: MTDC Map – Seattle 75

FIGURE 63: MTDC Supply and Demand – Seattle 76

FIGURE 64: MTDC Utilization – Seattle 76

FIGURE 65: MTDC Pipeline – Seattle 77

PHOENIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

FIGURE 66: MTDC Providers – Phoenix 79

FIGURE 67: MTDC Market Share Leaders – Phoenix 80

FIGURE 68: MTDC Map – Phoenix 81

FIGURE 69: MTDC Supply and Demand – Phoenix 82

FIGURE 70: MTDC Utilization – Phoenix 82

FIGURE 71: MTDC Pipeline – Phoenix 83


BOSTON . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

FIGURE 72: MTDC Providers – Boston 85

FIGURE 73: MTDC Market Share Leaders – Boston 86

FIGURE 74: MTDC Map – Boston 87

FIGURE 75: MTDC Supply and Demand – Boston 88

FIGURE 76: MTDC Utilization – Boston 88

FIGURE 77: MTDC Pipeline – Boston 89


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North American Multi-Tenant Datacenter Supply: Top Markets – 2011