Posted by: Greg Ness | January 21, 2012

Nemertes Predicts Colocation Crunch

For a fresh perspective on data center obsolescence check out The Coming Colocation Crunch by Nemertes Principal Analyst Ted Ritter writing for Data Center Knowledge this week (Jan 18, 2012):

“Nemertes Research predicts a shortage of colocation space in the U.S. beginning this year, growing to a $1.9 billion facilities gap by 2015.”

Colocation comes in all shapes and sizes, from leased racks and stacks and public cloud services to containers and modules as well as large and highly customized (yet leased) wholesale data centers and campuses.  According to Gartner the low end population of individual racks and computer rooms is shrinking while the population of enterprise and large data centers is growing at a healthy pace.*

This makes sense.  Enterprises are migrating to larger and newer data centers about as fast as their users are migrating to new network-connected devices and IT teams are migrating to newer software tools and applications and ever more powerful servers.

The public cloud is generating more IT service demands for environments consuming less than 300 kW (competing directly with the small computer room or rack) while creating a new generation of customers who will eventually migrate into wholesale space or their own construction as their power consumption passes 500 kW (when cloud can become less economical).   So we see growth in larger data centers and shrinkage in the traditional, less efficient rooms, etc.

More reading:

Equinix (EQIX), Other Data Center Operators Expand, But Some Investors Fear An Oversupply –

2011: The Year Data Centers Turned Green | Wired Enterprise |

* Forecast: Data Centers, Worldwide, 2010-20157 Oct 2011 | ID: G00221544 By Jonathon Hardcastle.



  1. […] blogs over the years on the recent boom in data center co-location spending, including coverage of this forecast from 2011 predicting colocation shortages in the near future.  I was last year convinced that the […]

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