Data center colocation market set to expand

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Many businesses are looking to partner with a colocation provider to improve their data center functionality. A recent IMS Research study found that the colocation market experienced revenues of $6.5 billion in 2012, Data Center Knowledge reported. 

The study predicted that the colocation sector will experience revenues of approximately $10 billion in 2017. This represents considerable growth, the news source explained.

Speaking in a panel discussion at Data Center World, Jason dePreaux, associate director at IMS, explained that retail colocation is currently the dominant part of the market, the report said.

At the same event, industry expert Jim Leach told audiences that the motivating point behind colocation investments has shifted away from network services and become more about supplying power resources, Data Center Knowledge explained.

“The colo business began as an outreach of the telecom industry,” Leach explained, according to the report. “What’s really driving this industry is power. Can I expand and contract power? Can I move power around the data center? Going forward it will be about power and how we provision it.”

Data center colocation can be an ideal option for businesses that are facing new IT challenges. High-density data center resources can draw incredible amounts of power, an issue that colocation services can help organizations overcome.