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Hyperscaler growth fails to undermine growth in colocation data centres

Hyperscaler growth fails to undermine growth in colocation data centres

New research conducted by IDC has found that while 2017 represents a massive year for hyperscale data centres, this will fail to offset the growth colocation facilities are experiencing. Greg McCulloch, CEO of Aegis Data claims that more and more customers will see value in hosting their servers in OPC environments to better cater for their IT needs.

In IDC’s latest report, ‘Worldwide Datacenter Census and Construction 2014-2018 Forecast: Aging Enterprise Datacenters and the Accelerating Service Provider Buildout’, it claims that while the industry is at a record high of 8.6 million data centre facilities, after this year, there will be a significant reduction in server rooms. This is due to the growth and popularity of public cloud based services, occupied by the large hyperscalers including AWS, Azure and Google, which is expected to grow to 400 hyperscale data centres globally. Despite this, colocation is expected to grow alongside wholesale and hyperscale.


The influence of hyperscalers in the data centre market is increasing by the year, but this shouldn’t be seen to hinder the growth of colo facilities. Customers are constantly looking for the right solutions to better help realise their IT needs, and colocation facilities are using hyperscalers as a template for this success. Many of the most popular cloud-based companies such as Google and Microsoft cater for OCP and similarly colos are better enabling this for customers who are trying to move away from managing their own data centres to a more efficient way of IT.

— Greg McCulloch, CEO of Aegis Data

“The popularity of OCP, particularly with the hyperscalers, has trickled down towards the customers who are becoming more alert to the benefits that this new innovation can offer. An OCP environment enables customers to have a more scalable solution that can be easily upgraded to respond to market trends and future-proof requirements of servers even years down the line. Data centres within organisations are largely constrained, whereas OCP can easily re-deploy for different applications such as HPC, reducing costs associated with application-specific systems, leading to space efficiency, flexibility and lower operating expenses.”

With data centre demands constantly being pushed by new technologies, more organisations will begin moving away from internal data centres and will see more business going towards outsourcing their server requirements. Greg continued:

“In the growing digital age where we’re seeing millions of data exchanges occurring at any given time, colocation facilities have had to move with this trend ensuring efficiencies and economies-of-scale for their customers. The traditional infrastructure of data centres that has worked well for a number of years has started showing signs of age especially with the advent of new technologies such as IoT and the introduction of 5G networks, which will continue to push the demands on the data centre. This could be one of the reasons that we’re seeing a decline in server rooms as customers are growing wary that having a managed service or an environment to better handle these fluctuating trends.”

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