are bay area colocation providers attracting enough capital? (slideshare)

Are Bay Area Colocation Providers Attracting Enough Capital?

Sponsored by DataCenterLeadGen.com

As more and more companies move into the area to be closer to their data centers,


the urgent need for more investment in colocation centers will continue to grow


Supply vs. Demand Issues


This high demand for Bay Area colocation has a direct impact on price


with rents ranging from $125 to $165 per kilowatt each month and expected to get even higher


This phenomenon can be attributed to “server hogging”


or companies choosing to go with the Bay Area because it’s closer to them and reduces latency


Who is Attracted to the Area?


Those attracted to investing in the Bay Area, for the most part, are local firms and Chinese Internet companies


As the demand from corporate clients changes,


Bay Area colocation providers will need to adapt and offer various levels of redundancy (2N, N+1, and N)


As office real estate becomes increasingly unaffordable,


a lot of companies are trying to reduce office space by hosting their IT labs at outsourced data centers


However, all these changes in the market are driving growth and attracting capital in the Bay Area


Who is Making an Impact?


According to the Silicon Valley Business Journal, the biggest players in the area are as follows:


• CenturyLink Inc.


• CoreSite Realty Corp.


• Digital Realty Trust Inc.


• DuPont Fabros Technology Inc.


• Equinix Inc.


These companies have been attracting significant amounts of capital to expand and to try to meet the demand


However, at the present time Bay Area data centers are nowhere near their goal and it doesn’t look like it will change in the near future


Although there has been a lot of investment, it is simply not enough for supply to match the enormous demand


Has your company outsourced to a Bay Area data center?


Let us know about your experience in the Comments box below


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