2022 Global Data Center Market Comparison

Market Size

Existing major markets have several advantages that appeal to both clients and operators alike. These well-established markets have access to all major cloud services, allowing for high performance and peering opportunities. There are also known operators in these markets, with corresponding experienced staff for hire and knowledgeable sales representatives to assist with filling buildings. Local governments understand the planning approval process and utilities are not surprised when operators inquire on large power requirements. The largest markets are thus positioned for continued growth, at least until the power grid is maxed out or political imperatives change. For hyperscale cloud services, large markets appeal as an opportunity to create new business and then to expand thereafter once usage has become commonplace. Several services will lease or build a major data center after signing an initial anchor tenant, with the expectation that surrounding enterprises or government organizations that conduct business with the initial tenant will later join on

the platform. After a first hyperscaler enters, others follow to compete for market share, swelling the size of the capacity in-market and leading to further construction, with mid-scale cloud services moving in thereafter. As many primary markets grow ever larger and secondary markets move toward primary level, Northern Virginia remains by far the largest market globally, with just under 1.7 GW currently operational and a GW size coming over the coming months. The remainder of the top ten are very familiar to data center veterans: London, Tokyo, Shanghai, and Singapore follow, with Silicon Valley, Frankfurt, Dallas, Chicago, and Hong Kong thereafter. While Singapore has elected to pursue a moratorium on new construction for the time being and there are certain concerns in Frankfurt over power supply, many of these core markets continue to enjoy healthy construction pipelines or will be able to achieve rapid buildout as required. Expect further development throughout these core locations in the next year, albeit with many current mid-tier markets growing rapidly.

Northern Virginia London Tokyo Shanghai Singapore Silicon Valley Frankfurt Dallas Chicago Hong Kong Top Markets


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