New data from Synergy Research reveals that just 20 metropolitan areas dominate 60 percent of the global colocation market.
Top colocation markets by country metroNorthern Virginia, Beijing, London, Shanghai, Tokyo, New York, Frankfurt, Singapore, Silicon Valley, Chicago, Dallas, Hong Kong, Paris, Amsterdam, Atlanta, Phoenix, Sydney, Mumbai, Los Angeles, and Sao Paulo are top 20 metropolitan areas for colocation market.
Northern Virginia emerges as the largest market, holding nearly 7 percent of the total share. Following closely are Beijing, London, and Shanghai, each with around 5 percent, and Tokyo at 4 percent. The top 20 markets comprise eight from the US, seven from the APAC region, four from Europe, and one from Latin America.
Beyond the top 20, the next group of 20 metro markets contributes an additional 13 percent to the global market, with the US and Europe playing a more significant role in this segment.
Northern Virginia stands out as a pivotal market, having been integral to the early development of Internet infrastructure and continuing to thrive due to its robust networking ecosystem, business-friendly environment, and access to affordable power.
Other leading colocation markets are located in the world’s major economic centers. However, rapid growth is also seen in emerging metros like Johor, Jakarta, Chennai, Lagos, Rio de Janeiro, Johannesburg, and Queretaro.
Synergy’s findings are based on comprehensive quarterly tracking of colocation markets, covering both retail and wholesale sectors. The research includes data from nearly 300 colocation companies, with detailed analysis for over 50 countries and 85 metro markets. Major global colocation players include Equinix, Digital Realty, NTT, China Telecom, CyrusOne, and GDS.
Proximity to customers is crucial in the colocation market, which is why data centers are concentrated in metros with significant economic activity.
“However, we’re seeing emerging metros in smaller but rapidly growing economies like Malaysia, Indonesia, Nigeria, and South Africa,” said John Dinsdale, Chief Analyst at Synergy Research Group.
In Latin America, the colocation market has expanded beyond traditional hubs like Sao Paulo, with high growth now evident in Santiago, Rio de Janeiro, and Queretaro. While these emerging markets may not reach the scale of established hubs like Singapore or Frankfurt soon, they are set to play an increasingly influential role in the evolving colocation landscape.
