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Colocation Data Center Evolution: Then VS Now

By Mike Netzer · 4/7/2025

In the latest episode of the datacenterHawk podcast, Mike Netzer, VP of Sales and Marketing, and David Liggitt, President and Founder of datacenterHawk, delve into the dynamic evolution of the colocation data center industry. This discussion not only provides a glimpse into the industry's past trajectory but also forecasts future trends and challenges.

Growth and Transformation in Hyperscale and Colocation Markets

The podcast kicks off with a discussion on the transformation of hyperscale and colocation markets. Over the past decade, these sectors have undergone significant evolution, influenced by the demand from large users, often referred to as the big five, big seven, or big ten. The expansion of these markets has reshaped the landscape, pushing the industry's boundaries and encouraging innovation to meet the soaring demand for data center capacity.

Unprecedented Market Expansion

The data center market's growth is nothing short of extraordinary. From a modest 2 gigawatts in 2015 to a staggering 18 gigawatts projected by 2024, the U.S. market exemplifies this explosive growth. The surge is primarily driven by large leasing deals and an ever-increasing need for data center capacity, highlighting the critical role data centers play in our technology-driven world.

Navigating Challenges: Power Shortages and Market Adaptation

While the growth is impressive, it brings along challenges that operators must navigate. Power shortages and adapting to shifting market demands are key hurdles discussed in the podcast. However, these challenges also present opportunities. Smaller markets and overlooked enterprise segments offer potential growth avenues for those willing to innovate and adapt to changing dynamics.

Future Trends and Opportunities in Data Center Industry

Looking ahead, the data center industry is poised for further transformation. The continuous evolution of AI infrastructure and the emergence of second-generation spaces signal new opportunities. There's also potential for a resurgence of enterprise data centers, indicating a shift in market strategies. The evolving relationship between colocation and hyperscale markets will significantly impact the industry's trajectory, offering both challenges and opportunities for growth.

Conclusion: Enhancing Credibility and Authority in Data Center Real Estate

The insights shared in the datacenterHawk podcast are invaluable for anyone invested in the data center real estate market. By providing a comprehensive overview of market trends and future opportunities, datacenterHawk establishes itself as a credible authority in the industry. This podcast not only enhances the brand's presence but also reinforces its commitment to offering strategic insights and fostering growth in the data center landscape.

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