Colo-X, the specialist colocation industry agents, have highlighted major changes taking place in the UK colocation industry as one of the key issues in their 2013 research report entitled “UK Colocation Industry, Structural Changes and Trends”.

In summarising the research Colo-X founder Tim Anker said: “as recently as early 2012 the UK colocation industry could be neatly summarised into three key categories between wholesale, colocation and managed service providers.  Over the course of the last year or so the boundaries have rapidly broken down, with wholesale offering colocation, colocation competing for wholesale and even managed service providers now actively seeking both colocation and wholesale opportunities.  Our previous views are having to be rapidly re-written”.

“Besides this shift in industry structure taking place our research also shows that the value proposition of the premium ecosystems remains intact but that the market is clearly beginning to differentiate between those facilities with strong and proven ecosystems and those without, with a 30% price difference now emerging.  Identifying these key ecosystems and the specific deployments that need to be in them is becoming a key part of our agency service” said Anker.  “All in all it’s a fascinating time for the UK colocation industry and it’s been really interesting to sit down and put these thoughts and ideas down in this year’s report”.

The Colo-X research, a 50 page report, covers the three key sub-markets in the UK being that in Central London, the M25 and the Regional UK Market.  Some key facts from the Colo-X report include:

  • Colo-X is now tracking 36 dedicated colocation facilities in London and the M25 market offering 2.3m sq ft of net tech.
  • In the regional UK market the Colo-X database covers 37 facilities providing a further ½ m sq ft of net technical space.
  • Colo-X research shows that the average price per kW has risen only 15% in the UK regional colocation market over the last 8 years compared to an increase of 120% in Central London.
  • Pricing per cabinet across the UK now ranges between £800 per rack per month to over £1600, for a 3.5 or 4kW footprint , with pricing dependent on location, operator and ecosystem