Selling Datacentre colocation in 2025

📈 Are colocation sales booming, now that the AI and overall datacentre investments are getting announced every week? 

📊 How 2025 will materialise in terms of B2B sales for normal-sized customers in the eyes of datacentres owners & operators?

"Colocation" being a type of hashtag#datacentre where equipment, space, and bandwidth are available for rental to retail customers “ (wikipedia). 

📌 Visually speaking colocation means hundreds of customers sharing white space datahalls, with each customer having their own rack or racks, or a private cage. 

🏢 🏢 🏢 

All these customers are sharing (“co-locating”) the facility's infrastructure: space, networking infrastructure, power, cabling etc. It's this shared infrastructure coupled with extra resiliency and security of the datacentre building itself that creates economies of scale and makes colocation services commercially viable.

THE GOOD

The good news for colocation sellers in 2025 is that demand will be on the raise in the foreseeable future: 

reason #1: 

AI deployments expected growth and needs for more and bigger DC capacity 

&

reason #2: 

Current capacity in existing datacentres is insufficient and in some prime metros (FLAP) even scarce. In short, demand outstrips the supply. 

And this is definitely a very good news for those who have availble colocation in their datacentres in 2025. 

THE BAD 

Locations that are most sought after cannot or can hardly accommodate the demand (Amsterdam, Ireland) and both customers and datacentre companies have to look for alternative nearby locations which some providers might or might not have in their portfolios. 

🔌 For those wanting to sell the space, this will become a challenge as without space & power there is no sale. 

🔌 For the customer, sooner or later they will be able to find a suitable location even if adjusting for it slightly. 

And a deal might "migrate" suddenly to the provider having that particular space. 

THE UGLY?

New entrants in the market are a major disruptor that is overall welcomed by the industry and our customers - and rightly so. While breaking into the market they have availability, offer VERY flexible terms & pricing. Their facilities are brand new and inviting. 

🪄 The only magical ingredient they dont yet posses are scores of existing customers already deployed in their facilities which create its own ecosystem.

Nevertheless, the competition is becoming just tougher and smarter in 2025. 

💡 And what is your experience selling or buying colocation services in recent months, feeling any difference? 

#colocation #datacentrecolocation #datacentre #spaceandpower #colocationsales