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DCD Industry Census 2011: Introduction

The Objective

The 2011 Data Center Industry Census was designed to be the largest ever comparative study of data center operators and end-users, in order to:

1. Provide statistically valid snapshots of scope and direction of the global data center industry as of July 2011.

2. Collect information from all sides of the industry (owners, operators, suppliers, vendors) and make that information available back to the industry.

3. Enable comparison between markets to track individual market development.

4. Create opportunity for the industry to come together and help raise money for a worthy global cause — the UNICEF Children’s Emergency fund.

The Set-up

The questions asked were developed after extensive consultation, and referencing 15,000+ questionnaires obtained from DatacenterDynamics events over the last five years.

The online survey was made available in English, French, German, Italian, Russian, Chinese and Spanish.

Separate questions were asked of data center owners and operators and of vendors/suppliers into data center markets.

The survey was conducted over June and July 2011.

The Response

We achieved 5,400 interviews in total, 3,800 from data center owners and operators and 1,600 from suppliers/vendors.

Interviews came from more than 70 countries with sufficient numbers for statistical analysis from 22 key markets and groups of markets.

The sample includes a high level of representation of all major types and sizes of private and public organisation, of different facility profiles and of different respondent typologies (IT, FM, experienced/less experienced etc...).

The Result

The Census enables us to:

1. Profile individual markets and sectors and to compare them against each other.

2. Describe key trends in the evolution of data center markets and the reasons behind those trends.

3. Find out how individuals from different backgrounds and jobs perceive new technologies.

4. Provide answers to a myriad of questions on the nature of this rapidly growing industry sector.

THE 2011 CENSUS

Reproduction & Copyright Information: © DatacenterDynamics, London 2011.Any graphs, charts and text in this document may be reproduced in full with acknowledgement of the source as ‘DatacenterDynamics Global Industry Census 2011’ with a link to our website URL - http://www.datacenterdynamics.com/research. Reproduction for the purposes of print publication is permitted only with the written permission of DatacenterDynamics – call Nick Parfitt on +44 (0)20 7377 1907.

Legal Disclaimer The information shown in this document has been derived from sample research. As with any sample survey the findings may not necessarily be representative of the attitudes or behaviours of the entire population from which the sample has been taken. DatacenterDynamics takes no liability for any actions or decisions taken wholly or in part on the basis of the data included herein. Full information on the methodology for data collection & analysis is available online.

DCD Industry Census 2011: Market Growth

MARKET GROWTH

59%

Russia

About the sample?

» Sample size operates almost 100,000 FACILITIES – projected increase of 7% into 2012

» Sample operates 7.7 MILLION RACKS – projected increase of 15% into 2012

» Sample consumes 31 GW OF ENERGY – projected increase of 19% into 2012 (where 1 GW is power used by 750,000 to 1 million homes)

» 2010-11 investment about US$30 BN – expected to rise to US$35 BN in next 12 months (i.e. equivalent to nominal GDP of Kenya, Costa Rica or Lithuania)

Growth in the data center sector is common to all markets covered by the Census, although the extent of growth varies according to the urgency of the market’s IT requirements, already established facility base and the capability of its resource base to fund, develop and maintain new facilities.

‘Growth’ in the context of data center markets

can take a number of forms to meet increased IT demand:

» The construction of new facilities.

» The extension or upgrading of existing facilities to cope with increased IT demand.

» Increased use of outsourcing.

This map overlays census data on data center investment 2011-2012 with GDP data from the World Bank

Keyz Growth GDP 4% Investment 2011-12

z Growth GDP 2.5% - 4%

z Growth GDP <2.5%

(% growth in GDP 2011-12 Source: World Bank and central banks)

50%

Central USA23%

West USA

23%

East USA

19%

Colombia

11%

Mexico

74%

Turkey

35%

Italy

31%

Nordics

26%

Argentina

47%

MENA

44%

China

43%

India

43%

Brazil

59%

Russia

54%

Australia

118%

SE Asia

25%

UK26%

Germany

8%

Canada

16%

Benelux

10%

France

9%

Spain

26%

Argentina

50+

0

© DatacenterDynamics, London 2011.

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DCD Industry Census 2011: Market Growth

Rank % growth in facility profile 2011-12

% growth in investment 2011-12

US$ (billion) value of investment 2012

1st Turkey 60% SE Asia 118% Western USA 3.5

2nd Brazil 45% Turkey 74% UK 3.35

3rd Colombia 40% Russia 59% China 3.1

4th Argentina 36% Australia 54% Eastern USA 2.9

5th Russia 29% Central USA 50% Central USA 2.8

6th China 28% Middle East 47% Germany 2.6

7th Mexico 17% China 44% Australia 2.45

8th Germany 16% India 43% Brazil 2.15

9th Benelux 14% Brazil 43% France 1.95

10th Nordics 14% Italy 35% Italy 1.95

11th Eastern USA 13% Nordics 31% Canada 1.9

12th Italy 13% Germany 26% SE Asia 1.9

13th India 12% Argentina 26% Mexico 1.8

14th Central USA 12% United Kingdom 25% Turkey 1.8

15th SE Asia 11% Western USA 23% Russia 1.65

16th Australia 11% Eastern USA 23% Argentina 1.6

17th Canada 10% Colombia 19% Benelux 1.55

18th Middle East 9% Benelux 16% India 1.5

19th France 7% Mexico 11% Middle East 1.5

20th Spain 6% France 10% Spain 1.35

21th UK 5% Spain 9% Colombia 1.2

22th Western USA 3% Canada 8% Nordics 0.95

Ranking our markets

Why is the data center beating the global recession?

» The world is becoming more IT dependent. Even in ‘developed’ economies there is still considerable room for expansion of IT functions within business, government and society

» In five years the number of Internet users has jumped from 1.043 billion users (16% of the world’s population, June 2006) to 2.11 billion (30%, June 2011). (Source: Internet World Stats)

» The number of smartphones is projected to rise from 500 million in 2011 to 2 billion by 2015 (Source: International Telecommunications Union)

» In August 1995 there were 18,000 websites, by 2009 this had risen to 215 million (Source: Netcraft)

The seven markets which indicate the greatest increase in facilities and racks are all developing economies where the existing data center infrastructure is currently not adequate to cope with IT capacity requirements. The top ten here is rounded out by the strongest growing European markets. All of the fastest developing data center markets are also projected to indicate the highest increases in GDP over the next 12 months.

Ranking indicates some idiosyncracies – particularly in markets where there will be strong growth in investment rather than in facility growth – South East Asia, Middle East, Australia and Central US markets. These are markets where considerable investment is being made in upgrading existing data center stock.

While the most spectacular growth is generally seen in developing markets, the quantum of growth is balanced between developed and developing markets. Thus, the dollar value of the increase in investment across the three US markets is equivalent to all growth across the Asia Pacific region.

Modern Istanbul

© DatacenterDynamics, London 2011.

© DatacenterDynamics, London 2011.

DCD Industry Census 2011: Profiles

This index has been designed as an aid to interpreting the sample data – it is used in various parts of the special report. The basis for the calculation is shown below. It should be noted that the weightings have been calculated based on factorial analysis of Census and relevant external data and the output is purely a relative measure between markets. There is no absolute value which a market needs to reach since, on the evidence of computing this scale since 2007, the global sector will move and evolve, not just individual markets. To the right you can see examples from two markets.

Over the next month we will be publishing a series of short reports available online that will look at the data center infrastructure by market sector, energy profiles and investment plans and technology requirements.

Go online today to download our market profile and growth index report that covers 20 major data center markets:

www.datacenterdynamics.com/research

The Data Center Development Index [DCDi]

DI Segment Score Description/Focus

A1 50+ Global

A2 30-50 Developed Regional

A3 20-30 Developed Local

B1 20-30 Developing Major

B2 10-20 Developing Intermediate

B3 Under 10 Developing Minor GLOBAL MARKETPROFILE REPORT

PROFILES

Download the global market profile report*

Industry sectors represented by sample*

18.7 15.3 15.3 18.7 41.121.3 10.3 14.4 16.3 37.713.5 20.7 17.7 48.1

No. of data centers per organization: Grouped % total - (20 racks +)

0

10

20

30

40

50

100+51-10026-5011-256-102-51

Dedicated space per organization: Grouped % total - (white/raised floor m!)

0

10

20

30

40

50

60

Over 250005001-250002501-50001001-2500501-1000251-500Under 250

United KingdomSample size: 397 End-user/operators

Estimated rack population of sample: 1 million

Growth indicated by sample: next 12 months

+2.7% +3.0% +6.7%

Where is their primary data center housed?

38.7 61.3

DCDi 53.5

+9.1% +14.2% +22.1%

RussiaSample size: 232 End-user/operators

Estimated rack population of sample: 140,000

14.5 11.7 16.6 18.3 38.9

0

10

20

30

40

50

100+51-10026-5011-256-102-51

0

10

20

30

40

50

60

Over 250005001-250002501-50001001-2500501-1000251-500Under 250

74.5 25.5

DCDi 11.1

Sector Scope & Influence

» Scope of influence of datacenter sector & vendors/suppliers

» Net import/export profile

n

Sector Activity

» Number of projects » Investment base » Levels of technology consideration

o

Resource Base

» People (experience, qualification, pay) » Energy vulnerability » Vendor & supplier base

p

Facility Profile

» Size (facilities, space, racks) » Resource usage (power, people) » Technology adoption

q

Sector Context

» Size of economy » Business & population basis » Balance of economy » Levels of IT dependence

r

z Within an of!ce building z Standalone/purpose built facility

24%

27%

11%19%

n

o

p

q

r

19%

No. DCs No. DCsNo. Racks No. RacksTotal Power Total Power