The Top Colocation Data Center Providers [2024]

top colocation data center providers

Searching for the top colocation data center providers for your business? This guide ranks the best providers for 2024, from Equinix and Digital Realty to NTT Global Data Centers. Learn about their key features, strengths, and what sets them apart.

Key Takeaways

  • Colocation services allow businesses to lease data center space, providing cost-effective IT solutions and scalability without the need for significant upfront investment.
  • Top providers like Equinix and Digital Realty lead the market with global presence and sustainability, offering specialized services that ensure reliability and compliance.
  • When choosing a colocation provider, consider factors like location, security, scalability, and the terms of service-level agreements (SLAs) to meet your evolving business needs.

Overview of Colocation Services

An illustration representing various colocation services and data centers.

Colocation services offer a unique model where companies can lease space in data centers to house their servers and other IT equipment.

This fractional leasing model allows organizations to share the costs and resources associated with maintaining a data center, providing a cost-effective alternative to building and operating their own facilities.

Colocation services allow companies to concentrate on their core operations while taking advantage of enterprise-grade infrastructure, high-speed network connectivity, and data center services.

A key advantage of colocation is the ability to scale services in tandem with business growth.

The best colocation data centers provide scalable options that accommodate expanding business needs, allowing organizations to boost their IT capacity without significant upfront investment.

Many colocation companies also offer managed services to aid clients’ operations, adding value beyond simple space leasing.

Potential drawbacks, such as restrictive access to equipment and complex fee structures, should also be considered.

Despite these challenges, the colocation market remains highly competitive, offering a range of providers with varied pricing options to suit different business requirements.

Equinix: Global Leader in Colocation

An artistic representation of Equinix as a global leader in colocation.

When it comes to global presence and reliability, Equinix stands out as a leader in the colocation data center industry.

With over 28.1 million square feet of data center space across more than 26 countries, Equinix provides an extensive network of interconnected data centers and Equinix data centers that ensure superior uptime and operational reliability.

This extensive reach allows firms to expand their operations seamlessly across the globe, making Equinix a significant player in the market.

Equinix excels at offering specialized interconnection services, facilitating direct connections between customers and partners.

This enhances overall connectivity and performance, making Equinix a preferred choice for clients seeking robust and reliable colocation facilities.

Equinix provides the reliability and global reach needed to assist with both new IT operations and existing infrastructure enhancements.

Digital Realty: Sustainable and Reliable

Digital Realty is another heavyweight in the colocation industry, known for its commitment to sustainability and dependability.

Operating over 300 data centers across 24 countries, Digital Realty offers more than 34.5 million square feet of rentable space, catering to a diverse customer base of over 5,000 clients.

This widespread presence ensures that clients can find a Digital Realty data center in key locations to meet their needs, making it one of the leading data center companies in the market and a significant player in the data center industry.

What sets Digital Realty data centers apart is its focus on integrating environmentally-friendly technologies within its data centers.

Digital Realty fosters innovation and connects enterprises and service providers through a collaborative community platform, promoting sustainable practices and high availability.

Digital Realty provides a compelling solution for organizations aiming to align their IT infrastructure with sustainable goals.

NTT Global Data Centers: Performance and Compliance

An illustration depicting NTT Global Data Centers with a focus on performance and compliance.

NTT Global Data Centers prioritize performance and compliance, making them a top choice for enterprises with critical IT needs.

With over 160 data centers worldwide, NTT serves more than 1,700 customers across various sectors, ensuring high application performance and dependability through industry-leading service level agreements.

NTT’s focus on performance makes it a reliable partner for customers needing consistent and dependable IT services.

In addition to performance, NTT Global Data Centers adhere to stringent compliance standards, including ISO 27001 for information security management and NIST 800-53 for federal compliance.

Their commitment to meeting TIA-942 Rated 3 standards ensures redundancy and resilience for critical operations, providing peace of mind for companies concerned with regulatory compliance and data security.

CoreSite: High-Performance Connectivity

CoreSite distinguishes itself in the colocation market through its high-performance connectivity solutions.

Operating 28 data center locations across major metropolitan areas in the United States, CoreSite offers over 4.7 million square feet of data center facilities space.

This extensive footprint ensures that customers can find their own data center in key regions to meet their connectivity needs.

CoreSite’s extensive global network data center connectivity options are a significant strength.

With connections to over 450 network providers and the Open Cloud Exchange, CoreSite offers low latency and high availability, making it an ideal choice for companies that rely heavily on network functionality.

Dark fiber usage enhances scalability and connectivity, providing a robust infrastructure for business growth.

Cyxtera Technologies: Security and Customization

Cyxtera Technologies offers a unique blend of security and customization in the colocation industry.

Operating over 60 data centers globally, with a primary focus on North America, Cyxtera provides multiple levels of support and specifications to meet individual business needs.

This flexibility makes Cyxtera a preferred choice for clients looking for tailored colocation solutions.

At Cyxtera, safeguarding is paramount, with advanced features like biometric scanners, mantraps, and 24/7 video surveillance ensuring client data safety.

Additionally, their data centers utilize VESDA systems for early fire detection, enhancing overall safety protocols and providing a secure environment for mission-critical applications.

CyrusOne: Scalable Enterprise Solutions

CyrusOne is renowned for providing secure and reliable IT infrastructure solutions that facilitate scalable business operations.

Headquartered in Dallas, Texas, CyrusOne operates over 50 data centers across various key locations, serving approximately 1,000 customers.

This extensive network allows companies to expand their IT infrastructure seamlessly.

CyrusOne’s colocation services facilitate seamless connectivity and optimal speed, establishing it as a significant industry player.

With a global presence and a strong focus on customer satisfaction, CyrusOne continues to grow, recently expanding its market reach into Madrid.

For customers seeking scalable and reliable colocation solutions, CyrusOne provides the necessary infrastructure and support in the data center industry.

Iron Mountain: Secure Data Management

Iron Mountain stands out as a leading provider in the colocation market for its secure data management solutions.

Operating 18 data centers worldwide, Iron Mountain offers a range of colocation options, from simple server colocation to private data center suites and dedicated data halls.

This variety ensures that organizations can find a solution that fits their specific needs.

Iron Mountain’s offerings are centered on safety and compliance.

The company supports numerous compliance standards, including HIPAA, FISMA High, PCI-DSS, ISO 27001, ISO 50001, and SOC2/3, ensuring that client data is protected and compliant with industry regulations.

Additionally, Iron Mountain’s data centers are powered by 100% renewable energy, aligning their operations with sustainable practices.

Flexential: Customer-Centric Hybrid IT

An artistic representation of Flexential's customer-centric hybrid IT approach.

Flexential is known for its customer-centric approach to hybrid IT solutions.

Operating 41 data centers across the United States, Flexential offers a variety of services that enable rapid scaling of resources and infrastructure based on demand.

This flexibility makes Flexential an attractive option for organizations looking to adapt quickly to changing IT needs.

Flexential’s hybrid IT solutions, which include colocation, cloud services, and managed services, offer comprehensive support for diverse business needs.

Focusing on customer needs and offering scalable solutions, Flexential helps companies optimize IT infrastructure and maintain peak availability.

KDDI/Telehouse: APAC and European Expertise

With over 30 years of expertise, KDDI/Telehouse has a strong presence in the APAC and European markets.

Operating over 40 data centers globally, Telehouse serves around 3,000 customers, providing reliable and secure colocation solutions.

This extensive experience positions KDDI/Telehouse as a trusted partner for clients seeking expansion in these regions.

Led by CEO Masatoshi Nobuhara, KDDI/Telehouse continues to innovate and provide high-quality services to its customers.

With a significant operational footprint and a focus on customer satisfaction, KDDI/Telehouse remains a key player in the colocation market.

QTS Data Centers: Innovation and Efficiency

QTS Data Centers are known for their innovative and efficient services, providing broad geographic coverage for their customers.

Operating data centers in both the United States and Europe, QTS serves more than 1,200 customers, reflecting a strong market presence.

This extensive network ensures that companies can find a QTS facility that meets their needs.

Under the leadership of CEO Chad Williams, QTS focuses on delivering high-quality services and maintaining impressive operational backbone with over 650 employees.

QTS presents a compelling option for companies seeking innovative and efficient colocation facilities.

How to Choose the Right Colocation Provider

An illustration showing key factors in choosing the right colocation provider.

Evaluating several key factors is crucial to choosing the right colocation provider that meets current and future business needs.

Organizations must assess their IT requirements and consider future growth to find a provider capable of scaling services accordingly.

Location, security, and scalability are critical factors that should drive the selection process.

How to Find A Colocation Data Center Provider

Hear from ENCOR’s Chief Growth Officer Jeff Howell on the typical process companies take to find data center companies, and why there is a cost-free better way with a data center consultant:

Understanding Colocation Pricing (and what to avoid)

Learn from Jeff what the # 1 cost is that companies overpay for, and how to fix it.

Understanding the service-level agreement (SLA) terms is vital for outlining outcome expectations and ensuring the provider can deliver the required service level.

Evaluating the data center provider’s facilities, data center pricing, and contract terms is essential for making an informed decision.

Cost transparency and awareness of potential hidden fees are also vital considerations in the decision-making process.

For companies unable to access facilities easily, remote management tools offered by colocation providers can be critical.

Carefully considering these factors will help organizations select the right colocation provider to bolster their IT infrastructure and business growth.

How do Data Center Broker Fees Work?

Hear from Jeff about companies that use data center brokers to find and secure data center contracts – they simplify the search process, compare bids on an apples to apples basis and save your company from paying too much.

All cost-free, as the colocation provider (landlord) pays the the success fee to ENCOR directly.

Summary

In conclusion, colocation services offer an affordable and scalable solution for businesses looking to enhance their IT infrastructure.

Industry leaders like Equinix, Digital Realty, and NTT Global Data Centers provide reliable and high-performance services that cater to diverse business needs.

Other providers, such as CoreSite, Cyxtera Technologies, and CyrusOne, offer specialized solutions that focus on connectivity, safeguarding, and scalability.

By understanding the strengths and offerings of these top colocation providers, businesses can make informed decisions and select a provider that aligns with their specific requirements.

Whether you prioritize global presence, sustainability, or high-performance connectivity, there is a colocation provider that can meet your needs.

Frequently Asked Questions
What should businesses consider when evaluating the network connectivity options of top data center facilities?

When assessing network connectivity options, consider the following:

  1. Carrier diversity: Number and variety of network providers available.
  2. Bandwidth capacity: Scalable options to meet growing data transfer needs.
  3. Low-latency connections: Proximity to major internet exchanges and peering points.
  4. Software-defined networking (SDN) capabilities: Flexible network provisioning and management.
  5. Cloud connectivity: Direct links to major cloud service providers.
  6. Cross-connect options: Ease of connecting to other tenants and services within the facility.
  7. Network redundancy: Multiple paths and failover options.
  8. Global reach: Ability to connect to international markets and data centers.
  9. Network monitoring: Tools for visibility into network metrics.
  10. Cost-effectiveness: Competitive pricing for bandwidth and cross-connects.

Evaluating these factors ensures that your colocation solution provides the connectivity required for optimal execution and uptime.

What are the latest trends and innovations in the top colocation data center provider market?

The colocation industry is evolving with several key trends and innovations:

  1. Edge computing: Expanding data center footprints to support applications that require minimal lag.
  2. AI and machine learning integration: Optimizing data center operations and energy efficiency.
  3. Liquid cooling: Advanced technologies for high-density computing.
  4. 5G readiness: Infrastructure upgrades to support 5G network deployments.
  5. Modular data center designs: Scalable and flexible facility construction.
  6. Increased focus on sustainability: Renewable energy adoption and circular economy practices.
  7. Software-defined data centers: Greater automation and virtualization of data center resources.
  8. Hybrid IT ecosystems: Seamless integration of colocation, cloud, and on-premises environments.
  9. Enhanced protection measures: Advanced biometrics and AI-powered threat detection.
  10. Data center interconnection: Improved connectivity between facilities and cloud regions.

These trends are shaping the future of colocation services, offering businesses more efficient, flexible, and sustainable IT infrastructure solutions.

How do top colocation facilities support hybrid and multi-cloud deployments?

Top colocation data center companies facilitate hybrid and multi-cloud deployments through:

  1. Direct cloud connections: Private, high-speed links to major cloud providers.
  2. Cloud on-ramps: Dedicated access points to cloud services.
  3. Network exchanges: Platforms for interconnecting with multiple cloud and network providers.
  4. Hybrid-ready infrastructure: Seamless integration between on-premises and cloud environments.
  5. Multi-cloud management tools: Unified interfaces for managing diverse cloud resources.
  6. Edge computing capabilities: Support for distributed computing architectures.
  7. Flexible connectivity options: Software-defined networking and virtual cross-connects.
  8. Professional services: Assistance with cloud migration and hybrid architecture design.
  9. Compliance support: Ensuring regulatory requirements are met across hybrid environments.
  10. Scalable colocation options: Ability to adjust on-premises footprint as cloud usage evolves.

These features enable businesses to create optimal hybrid and multi-cloud strategies tailored to their specific needs.

How do top colocation facilities address environmental sustainability?

Leading colocation providers implement various sustainability initiatives:

  1. Energy-efficient cooling systems: Free cooling and hot/cold aisle containment.
  2. Renewable energy sourcing: Solar, wind, or hydroelectric power usage.
  3. Green building certifications: LEED or BREEAM standards for facility design.
  4. Power usage effectiveness (PUE) optimization: Continuous monitoring and improvement.
  5. E-waste management: Responsible disposal and recycling of electronic equipment.
  6. Water conservation: Efficient technologies and water recycling systems.
  7. Carbon offset programs: Investments in environmental projects to balance emissions.
  8. Energy-efficient lighting: LED fixtures and motion sensors.
  9. Sustainable materials: Use of eco-friendly construction and operational materials.
  10. Transparency: Regular reporting on environmental impact and sustainability goals.

These efforts help reduce the environmental footprint of data center operations and assist clients’ corporate sustainability objectives.

How do top colocation data center facilities ensure high availability and uptime?

Top colocation data center facilities implement various measures to ensure reliable availability and uptime:

  1. Redundant power systems: Multiple power feeds, UPS systems, and backup generators.
  2. Advanced cooling infrastructure: Precision cooling units and hot/cold aisle containment.
  3. Network redundancy: Multiple carriers and diverse network paths.
  4. 24/7 monitoring: Continuous surveillance of all critical systems.
  5. Proactive maintenance: Regular equipment checks and upgrades.
  6. Robust physical safeguarding: Multi-layer access controls and surveillance.
  7. Fire suppression systems: Advanced fire detection and suppression technologies.
  8. Service level agreements (SLAs): Guaranteed uptime commitments.
  9. Disaster recovery planning: Geographically diverse locations and backup strategies.
  10. Experienced staff: On-site technicians and support personnel.

These measures work together to provide the highest levels of dependability and minimize downtime for colocation customers.

What security measures do top data center services typically offer?

Top data center services implement comprehensive safety measures to protect their clients’ assets:

  1. Physical safety: Perimeter fencing, mantraps, and biometric access controls.
  2. 24/7 on-site defense personnel and video surveillance.
  3. Network security: Firewalls, intrusion detection/prevention systems, and DDoS mitigation.
  4. Compliance certifications: SOC 2, ISO 27001, PCI DSS, and HIPAA.
  5. Secure cage or cabinet options for equipment isolation.
  6. Environmental monitoring: Temperature, humidity, and smoke detection systems.
  7. Regular safety audits and penetration testing.
  8. Secure remote access options for clients.
  9. Data destruction services for decommissioned equipment.
  10. Employee background checks and safety training.

These multi-layered protection measures ensure the protection of both physical assets and data within the colocation facility.

What factors should be considered when choosing a colocation provider?

When selecting a top colocation data center provider, consider the following factors:

  1. Location and proximity to your headquarters
  2. Network connectivity options and carrier neutrality
  3. Power capacity and redundancy
  4. Physical safeguarding measures
  5. Compliance certifications (e.g., HIPAA, PCI DSS, ISO 27001)
  6. Scalability options for future growth
  7. Service level agreements (SLAs) for uptime and support
  8. Disaster recovery and business continuity capabilities
  9. Pricing structure and total cost of ownership
  10. Additional services offered (e.g., remote hands, managed services)

Evaluating these factors will help you choose a provider that aligns with your business needs and ensures optimal speed and stability for your IT infrastructure.

What are the benefits of using a top colocation data center provider?

Utilizing a top colocation data center provider offers numerous advantages:

  1. Affordability: Avoid large capital expenditures on building and maintaining your own data center.
  2. Dependability: Benefit from enterprise-grade power, cooling, and network infrastructure.
  3. Scalability: Easily expand your IT infrastructure as your business grows.
  4. Safeguarding: Access advanced physical and cyber preservation measures.
  5. Connectivity: Leverage high-speed, low-latency connections to multiple carriers and cloud providers.
  6. Compliance: Meet industry-specific regulations more easily.
  7. Disaster recovery: Utilize geographically diverse locations for improved business continuity.
  8. Expert support: Access 24/7 technical assistance and remote hands services.
  9. Focus on core business: Outsource data center management to focus on strategic initiatives.
  10. Energy efficiency: Benefit from optimized power usage and cooling systems.

These advantages make colocation an attractive option for businesses of all sizes seeking to optimize their IT infrastructure.

How do colocation services differ from cloud hosting solutions?

Colocation services and cloud hosting solutions differ in several key aspects:

  1. Hardware ownership: In colocation, you own and maintain your hardware, while cloud providers manage the infrastructure.
  2. Control: Colocation offers more control over your hardware and software configurations.
  3. Scalability: Cloud solutions typically offer more rapid scalability, while colocation requires physical hardware changes.
  4. Pricing model: Colocation often involves long-term contracts, while cloud services usually offer pay-as-you-go models.
  5. Management responsibility: Colocation requires more hands-on management from your IT team.
  6. Customization: Colocation allows for greater customization of your IT environment.
  7. Safeguarding: Both offer robust defense, but colocation provides more physical access control.
  8. Compliance: Colocation may be preferred for specific compliance requirements.

Consider your business needs, budget, and IT expertise when deciding between colocation and cloud hosting solutions.

What makes NTT Global Data Centers a reliable choice?

NTT Global Data Centers is a reliable choice because they focus on high speed and compliance, backed by strict standards and exceptional service level agreements. You can count on them for top-notch dependability.

How does Digital Realty emphasize sustainability?

Digital Realty emphasizes sustainability by incorporating eco-friendly technologies in its operations and fostering sustainable practices within a collaborative community platform. This approach not only helps the environment but also encourages partners to engage in greener initiatives.

Why choose Equinix as a colocation provider?

Choosing Equinix as your colocation provider means you get access to a vast network of interconnected operating data centers, ensuring high uptime and tailored interconnection services for your needs. It’s a smart choice for anyone looking to enhance their digital infrastructure.

What are colocation services?

Colocation services let companies rent space in data centers, sharing costs while enjoying high-quality infrastructure. It’s a smart way to enhance your tech capabilities without the overhead.

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About the author

Hey there 👋 I'm Jeff, the Chief Growth Officer at ENCOR Advisors.  I lead the marketing team and have 24 years of experience in corporate real estate advisory, supply chain consulting and high growth SaaS. If there is anything ENCOR can help with, please reach out to me at 👉 jhowell@encoradvisors.com 👈 or feel free to connect on LinkedIn.