New York City Among Top 5 Metro Data Center Revenue Earners

When it comes to earning revenue for retail and wholesale colocation revenue – money earned from housing servers in a data center, New York City ranks high on the list. According to research by Synergy Research Group, during the fourth quarter of 2015, 27 percent of colocation revenue was generated by five major metro markets worldwide including New York City, London, Washington, Tokyo and Silicon Valley.

“Colocation is a complex market driven by a range of different factors, but it is quite evident from our in-depth research that the market is highly concentrated around a relatively small number of metro areas and is slowly gravitating even more towards those metros,” John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group said. “While major cloud providers tend to locate their hyperscale data centers well away from big urban areas, clearly the majority of colocation clients have a strong desire to locate their computing facilities close to major centers of commerce. This trend is advantageous to large colocation operators with a data center footprint that spans those key metro areas.”

Synergy provides quarterly market tracking and segmentation data on IT and Cloud related markets, including vendor revenues by segment and by region.