Market Insight

Optimized DC building construction processes bring 4.4 million square feet online in 1H 2018

March 14, 2019  | Subscribers Only

Alan Howard Alan Howard Senior Analyst, Cloud and Data Center
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Deployed data center capacity grew 4.6 percent globally in all regions in the first half of 2018, compared to the second half of 2017. The greatest growth occurred in Europe, Middle East and Africa, with an 8.2 percent increase in the first half of 2018 over the previous half year. North America grew at 4 percent, followed by Asia-Pacific (APAC) at 3 percent. Growth in in the Caribbean and Latin America (CALA) was flat. Growth is expected to continue at this pace until the middle of 2021.

All told, 49 new buildings were brought online, with 4.4 million square feet of capacity in the first half of 2018. The task of bringing such a large amount of capacity online in such a short time shows how service providers have fine-tuned their construction processes and supply chains, in order to accelerate the time to market to meet customer demand. With 60 percent deployed capacity, North America leads global regions, followed by EMEA at 21 percent, APAC at 18 percent and CALA at 1 percent.

“Repeatable processes, reusable designs, standardized infrastructure architecture and a close working relationship with infrastructure equipment suppliers drive just-in-time data center capacity delivery,” said Alan Howard, senior analyst, IHS Markit.

Average data center building capacity was 121,000 square feet, as of the first half of 2018. The average capacity by segment is 172,000 square feet for cloud service providers, 139,000 square feet for colocation service providers, 114,000 square feet for telco service providers and 80,000 square feet for the privately owned segment.

More Data Center Building Market Highlights

  • Less than one-quarter (21.8 percent) of total owned data-center building capacity is owned by cloud service providers, 45.8 percent by colocation service providers, 9.9 percent by telco service providers, and 22.5 percent is privately owned.
     
  • Average owned data-center power density remained stable at 114 watts per square foot from the second half of 2018 to the first half of 2018.
     
  • Total IT infrastructure operated hit 42.5 million square feet in the first half of 2018, dispersed across 518 owned or leased data centers.

Cloud and Colocation Data Center Building Report

Part of the IHS Markit Cloud and Colocation Intelligence Service, this biannual tracker provides worldwide and regional data center building capacity in square feet and kilowatts (kW). Data is also reported by market segment: cloud service providers, colocation service providers, telco service providers, and private. The report also covers data center ownership, physical infrastructure operators, and IT infrastructure operators. Providers tracked in this first release included Amazon Web Services, China Telecom, Coresite, CyrusOne, Digital Realty, Equinix, Google, IBM, Interxion, Microsoft, NTT, Oracle, Salesforce, SAP and Telehouse.

Geography
Global
Research by Market
Enterprise & IT
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