Silicon Valley and D.C. are hot spots of data center growth, says analyst firm

While data centers have continued to grow across the U.S., Silicon Valley and Washington, D.C., grew at twice the speed of the national market, a new Synergy Research Group report says. Dallas is also outpacing the national average.

Synergy Research Group points to six metro areas as the dominant markets with 59 percent accounting for total retail and wholesale colocation revenues. New York and D.C. alone account for 30 percent of the market. From a worldwide perspective, New York is the largest metro market for colocation in the world, but it is trailed closely by London, Tokyo and D.C.

Silicon Valley, Dallas, Singapore, Frankfurt, Chicago and Los Angeles round out Synergy's ranking of the top metros in the world for retail and wholesale colocation. 

A number of data center players are reaping the rewards of the data center growth. Equinix is the market leader in four of those six major metros. Digital Realty's acquisition of Telx enabled it to surpass Equinix in New York. Digital Realty also leads the Dallas metro market. Equinix and Digital Realty also face competition from a number of other players including CyrusOne, DuPont Fabros, CenturyLink, Verizon, Coresite, SunGard, NTT, AT&T and Infomart. Release

Synergy data center colocation market

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