30 metro areas generated 68% of worldwide colocation revenues in 2Q22: Synergy Research

June 28, 2022
Top 5 markets accounted for 26% of the worldwide market in the second quarter of 2022, the market research firm states.

Synergy Research Group says new data reveals that 68% of global retail and wholesale colocation revenues are concentrated in just 30 metro markets. The Top 5 markets accounted for 26% of the worldwide market in the second quarter of 2022, the market research firm states.

The top 30 metros include 14 in North America, 10 in Asia Pacific, 5 in EMEA, and 1 in Latin America. The five largest markets in the second quarter of 2022 were:

  1. Washington DC/Northern Virginia
  2. Shanghai
  3. Beijing
  4. Tokyo
  5. London.

The two Chinese cities saw the highest growth rate over the past year; Beijing’s market grew sufficiently to bump New York out of the Top 5 rankings, according to Synergy Research.

The high concentration of revenues in a relatively small number of markets has been a consistent trend over the past 30 quarters, the market research firm states. Synergy Research explains that major metros are natural locations for data centers because of their status as economic hubs. Conversely, the market also has seen more interest in building in more edge locations. The two opposing forces mean that revenue concentrations among the Top 30 have consistently stayed within the 66-68% range.

Within the Top 30, hot markets for colocation (measured in local currencies) during the quarter were Portland, Beijing, Mumbai, Seoul, Shanghai, Sao Paulo, and Osaka; each grew by over 15% year-over-year. Outside of the Top 30, Richmond, Salt Lake City, Montreal, and Milan also showed strong growth year-on-year.

Synergy Research Group provides quarterly market sizing and segmentation data on colocation and related markets, including company revenues by segment and by region.

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