INTERNET DATACENTER

GLOBAL MARKETS OVERVIEW – 2010

DATACENTER
REPORT BY

JEFF PASCHKE

JANUARY 2010
©2010 TIER1 RESEARCH & THE 451 GROUP DATACENTER
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REPORT SNAPSHOT
TITLE Internet Datacenter Global Markets Overview – 2010

ANALYST Jeff Paschke, Senior Analyst, Datacenters

RELEASE DATE January 2010
LENGTH 84 pages

ABOUT THIS REPORT

The Internet Datacenter Global Markets Overview 2010 report provides the overall size, scope
and growth of the Internet datacenter market globally. The report segments the global market
into regions including North America; Europe, the Middle East and Africa (EMEA); Asia-Pacific
and Latin America. It spotlights various prominent global Internet datacenter providers and
provides a market outlook for each.

The intended audience for this report includes:

• Colocation and wholesale datacenter providers assessing market share and market positions.

• Hosting providers considering datacenter leasing decisions and expanding globally.

• Financial professionals considering investments in datacenter properties and companies.

• Real estate and planning professionals interested in a global IDC market analysis and
provider-by-provider analysis of the multi-tenant datacenter space.

In this report, ‘Internet datacenters’ are considered multi-customer colocation and hosting
facilities. Single-user enterprise datacenters and single-tenant datacenters are specifically
excluded from this analysis.

This is the second in a planned series of Internet Datacenter Market Overview reports. Tier1
Research intends to publish two Internet Datacenter Market Overview reports annually –
one focusing on North America and a second focusing on global Internet datacenter markets
and providers.

TIER1 RESEARCH: DATACENTER 1

© 2010 THE 451 GROUP, LLC, TIER1 RESEARCH, LLC, AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.
 COMPANIES INCLUDED IN THIS REPORT
1-Net Singapore COLT Telecom

365 Main CoreSite

3i Credit Suisse

Advanced Info Services Cybernest

AIMS Asia Group CyrusOne

Aldersgate Investments DataSpace Partners

American Internet Services Digital Realty Trust

Ascendas Real Estate Investment Trust (A-REIT) Diveo Broadband Networks

AT&T DuPont Fabros

Baker Capital Equinix

Bear Stearns e-shelter

Bharti Airtel Exodus Communications

BSNL Fibernet

BT First Boston

Cable & Wireless Fujitsu

Capital-C Ventures Global Crossing

Cervalis Global Switch

China Telecom Globe Telecom

China Unicom Globix

Cincinnati Bell Goldman Sachs

Cobepa Highbridge Business Park

ColoSpace Hurricane Electric

2 INTERNET DATACENTER GLOBAL MARKETS OVERVIEW – 2010

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COMPANIES INCLUDED IN THIS REPORT

iAdvantage Peak 10

Impsat Peer 1

Internap Pihana Pacific

Internet Villages International Pinder Fry & Benjamin (PFB)

Interoute Primus

Interxion Q9 Networks

i-STT Quality Technology Services

IXEurope Qwest

KDDI RagingWire

KT Redbus Interhouse

Latisys Reliance Communications

Level 3 Communications Russia Partners

Morgan Stanley Dean Witter Sabey

Nautic Partners Savvis

NaviSite Sentinel Data Centers

Neotel Sentrum

Net2ez Sify

NTT Siguler Guff & Company

NTT Communications Singapore Telecommunications (SingTel)

Oak Hill Sun Hung Kai Properties (SHKP)

Optus SUNeVision

PCCW SunGard

TIER1 RESEARCH: DATACENTER 3

© 2010 THE 451 GROUP, LLC, TIER1 RESEARCH, LLC, AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.
 COMPANIES INCLUDED IN THIS REPORT
Swisscom

Switch and Data

Tata Communications

Tata Group

TelecityGroup (Telecity)

Telefónica

Telehouse

TeliaSonera

Telkom SA

Telkomsel

TelMex

Telstra

Telvent

Telx

Temasek Holdings

Teraco Data Environments

Terremark

Verizon Business

ViaWest

Virtu

Vodacom

Warid Telecom

XO Communications

4 INTERNET DATACENTER GLOBAL MARKETS OVERVIEW – 2010

© 2010 THE 451 GROUP, LLC, TIER1 RESEARCH, LLC, AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.
 Tier1Research
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TABLE OF CONTENTS

INTRODUCTION AND METHODOLOGY 1

FIGURE 1: Confidence Levels . . . . . . . . . . . . . . . . . 2
FIGURE 2: Currency Exchange Rate – Source Currency to USD . . . . . . 3
FIGURE 3: Currency Exchange Rate - USD to Target Currency . . . . . . 4

INTERNET DATACENTER TAXONOMY 6

INTERNET DATACENTERS . . . . . . . . . . . . . . . . . . . . . . 6
COLOCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
WHOLESALE DATACENTER . . . . . . . . . . . . . . . . . . . . . 7
INTERCONNECTION . . . . . . . . . . . . . . . . . . . . . . . . . 7
MANAGED HOSTING . . . . . . . . . . . . . . . . . . . . . . . . 7
GLOBAL INTERNET DATACENTER PROVIDERS . . . . . . . . . . . . . . . 8
FIGURE 4: Global Internet Datacenter Provider Services Mix
and Geographic Presence . . . . . . . . . . . . . . . . 9

GLOBAL IDC MARKET 12

OVERVIEW AND LEADERBOARD . . . . . . . . . . . . . . . . . . . 12
FIGURE 5: Top 14 Global IDC Markets . . . . . . . . . . . . . . 12
FIGURE 6: Global IDC Leaderboard . . . . . . . . . . . . . . . 13
IDC REVENUE AND TREND ANALYSIS . . . . . . . . . . . . . . . . . 14
FIGURE 7: Global IDC Revenue . . . . . . . . . . . . . . . . 14
FIGURE 8: 2010 Global IDC Revenue by Region . . . . . . . . . . . 15

NORTH AMERICAN IDC MARKET 16

OVERVIEW AND LEADERBOARD . . . . . . . . . . . . . . . . . . . 16
FIGURE 9: North American IDC Leaderboard . . . . . . . . . . . . 16
IDC REVENUE AND TREND ANALYSIS . . . . . . . . . . . . . . . . . 17
FIGURE 10: North American IDC Revenue . . . . . . . . . . . . .17

EMEA IDC MARKET 18

OVERVIEW AND LEADERBOARD . . . . . . . . . . . . . . . . . . . 18
FIGURE 11: EMEA IDC Leaderboard . . . . . . . . . . . . . . .18
IDC REVENUE AND TREND ANALYSIS . . . . . . . . . . . . . . . . . 19
FIGURE 12: EMEA IDC Revenue . . . . . . . . . . . . . . . . 19

TIER1 RESEARCH: DATACENTER 5

© 2010 THE 451 GROUP, LLC, TIER1 RESEARCH, LLC, AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.
 ASIA-PACIFIC IDC MARKET 20
OVERVIEW AND LEADERBOARD . . . . . . . . . . . . . . . . . . . 20
FIGURE 13: Asia-Pacific IDC Leaderboard . . . . . . . . . . . . .20
IDC REVENUE AND TREND ANALYSIS . . . . . . . . . . . . . . . . . 21
FIGURE 14: Asia-Pacific IDC Revenue . . . . . . . . . . . . . . 21

LATIN AMERICA IDC MARKET 22

OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
IDC REVENUE AND TREND ANALYSIS . . . . . . . . . . . . . . . . . 23
FIGURE 15: Latin America IDC Revenue . . . . . . . . . . . . . 23

GLOBAL IDC INDUSTRY TRENDS 24

TIGHTENING DATACENTER SUPPLY . . . . . . . . . . . . . . . . . . 24
LENDING STABILIZATION . . . . . . . . . . . . . . . . . . . . . 26
FIGURE 16: Datacenter Supplier New Debt . . . . . . . . . . . . 26
MARKET OPPORTUNITIES: THE FLEDGLING AND EMERGING DATACENTER
MARKETS . . . . . . . . . . . . . . . . . . . . . . . . . 27
FIGURE 17: Datacenter Market Maturity for 25 Largest Countries . . . . .29

DATACENTER PROVIDER PROFILES: PUBLIC COMPANIES 31

AT&T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
FIGURE 18: AT&T – Global IDC Footprint . . . . . . . . . . . . .32
FIGURE 19: AT&T – Global IDC Pipeline . . . . . . . . . . . . . 33
COLT TELECOM . . . . . . . . . . . . . . . . . . . . . . . . . 34
FIGURE 20: COLT Telecom – Global IDC Footprint . . . . . . . . . . 35
EQUINIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
FIGURE 21: Equinix – North America IDC Footprint . . . . . . . . .39
FIGURE 22: Equinix – Global IDC Pipeline . . . . . . . . . . . . 40
FIGURE 23: Equinix – Post Switch and Data Acquisition
Financial Projections . . . . . . . . . . . . . . . . . 40
GLOBAL CROSSING . . . . . . . . . . . . . . . . . . . . . . . . 42
FIGURE 24: Global Crossing – Global IDC Footprint . . . . . . . . . 44
FIGURE 25: Global Crossing – Global IDC Pipeline . . . . . . . . . .45

6 INTERNET DATACENTER GLOBAL MARKETS OVERVIEW – 2010

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IADVANTAGE . . . . . . . . . . . . . . . . . . . . . . . . . . 46
FIGURE 26: iAdvantage – Global IDC Footprint . . . . . . . . . . . 47
FIGURE 27: iAdvantage – Global IDC Pipeline . . . . . . . . . . . 48
KDDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
FIGURE 28: KDDI – Global IDC Footprint . . . . . . . . . . . . 50
FIGURE 29: KDDI – Global IDC Pipeline . . . . . . . . . . . . . 51
NTT COMMUNICATIONS . . . . . . . . . . . . . . . . . . . . . . 52
FIGURE 30: NTT – Global IDC Footprint . . . . . . . . . . . . . 53
FIGURE 31: NTT – Global IDC Pipeline . . . . . . . . . . . . . 54
SINGAPORE TELECOMMUNICATIONS . . . . . . . . . . . . . . . . . 56
FIGURE 32: Singapore Telecommunications – Global IDC Footprint . . . . 58
FIGURE 33: Singapore Telecommunications – Global IDC Pipeline . . . . 59
TATA COMMUNICATIONS . . . . . . . . . . . . . . . . . . . . . . 61
FIGURE 34: Tata Communications – Global IDC Footprint . . . . . . . 63
FIGURE 35: Tata Communications – Global IDC Pipeline . . . . . . . 64
TELECITYGROUP . . . . . . . . . . . . . . . . . . . . . . . . . 65
FIGURE 36: TelecityGroup – Global IDC Footprint . . . . . . . . . . 67
FIGURE 37: TelecityGroup – Global IDC Pipeline . . . . . . . . . . 68
TELKOM SA . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
FIGURE 38: Telkom SA – Global IDC Footprint . . . . . . . . . . . 71

DATACENTER PROVIDERS: PRIVATE COMPANIES 73

E-SHELTER . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
FIGURE 39: e-shelter – Global IDC Footprint . . . . . . . . . . . 74
FIGURE 40: e-shelter – Global IDC Pipeline . . . . . . . . . . . . 75
GLOBAL SWITCH . . . . . . . . . . . . . . . . . . . . . . . . . 77
FIGURE 41: Global Switch – Global IDC Footprint . . . . . . . . . . 78
FIGURE 42: Global Switch – Global IDC Pipeline . . . . . . . . . . 79
INTERXION . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
FIGURE 43: Interxion – Global IDC Footprint . . . . . . . . . . . . 82
FIGURE 44: Interxion – Global IDC Pipeline . . . . . . . . . . . . 83

TIER1 RESEARCH: DATACENTER 7

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 ABOUT TIER1 RESEARCH
Tier1 Research covers consumer, enterprise and carrier IT services,
particularly hosting, colocation, content delivery, Internet services,
software-as-a-service and enterprise services. Tier1’s focus is on the
movement of services to the Internet — what they are, how they are
delivered and where they are going.

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Analyzing the Business

of Enterprise IT Innovation

8 INTERNET DATACENTER GLOBAL MARKETS OVERVIEW – 2010

© 2010 THE 451 GROUP, LLC, TIER1 RESEARCH, LLC, AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.