Sydney has been named one of the biggest growing retail colocation markets in the world by a new report from Synergy Research Group.
According to the analyst firm, Sydney’s rolling annualised colocation revenue grew by roughly 15 per cent, placing it within the top five highest-growing metropolitan areas, alongside Sao Paulo, Beijing, Shanghai and Frankfurt.
The research found that now only 20 metro areas account for 56 per cent of worldwide retail colocation revenues, with Tokyo, New York, London, Washington and Shanghai accounting for a quarter of this collectively.
The next 15 largest metro markets account for another 31 per cent of the market, while eight North American cities feature in the top 20.
Meanwhile, seven come from the Asia Pacific region, four from Europe, the Middle East and Africa (EMEA) and one in Latin America.
In wholesale colocation, Synergy claimed the market is even more concentrated with the top 20 metros accounting for 71 per cent of worldwide revenue, with North American cities accounting for more than half of these.
In terms of data centre operators, Equinix was said to be the retail colocation market leader by revenue in 14 of the top 20 metros, with NTT being the only other operator to lead in more than one of the top metros.
In wholesale, Digital Realty was noted as the leader in eight of the top 20 wholesale markets and Global Switch the leader in three others.
“We continue to see robust demand for colocation across the board, with the standout regional growth numbers coming from APAC and the highest segment-level growth coming from colocation services for hyper-scale operators,” said John Dinsdale, a chief analyst and research director at Synergy Research Group.
“It is particularly noteworthy that the market remains concentrated around the most important economic hubs, reflecting the importance of proximity to major customers.”
Dinsdale also noted that the large metros will maintain their share of the colocation market over the coming years.