Wholesale Data Centers

Wholesale Data Centers And Wholesale Colocation Available For Lease Or Purchase Or Quote

Wholesale data centers and colocation play a significant role in the data center industry. Often massive in size with high-connectivity, dense power infrastructure and turn-key data center solutions, they offer leased wholesale space to large corporate users and data center operators or retail providers. DataCenterAndColocation negotiates space in wholesale data centers for corporate users and data center operators. We perform sophisticated comparative analysis between:

• building a data center
• moving into a wholesale data center or
• colocating in an existing data center with a qualified provider.

Large corporate users can lease space in wholesale data centers and colocation. Wholesale data center providers can either manage the infrastructure or allow users to manage this for clients at an additional cost. In the wholesale data center model, a large corporate user leases a dedicated, fully built data center space. Compared to colocation, a customer leases a smaller space within a data center, usually in a caged-off area or within a cabinet or rack. For larger clients, a wholesale data center can offer greater control and security than shared colocation space. The economics of wholesale space have historically been most attractive to companies requiring at least 1 megawatt of power capacity for their data center.  However, due to supply and demand, wholesale suppliers have been competing for deals of 500 kilowatts and below with some deals coming down into the 250 to 300 kilowatt range,  well below that half a megawatt range.

For data center operators, there are compelling reason to sublease space from a wholesale data center provider.  One main reason is construction time. A new data center facility usually requires 18 months on average to construct with large upfront CAPEX costs.  These upfront costs are substantial and it may be a while before a return is seen on the investment.  For many data center operators, they only require a few thousand square feet of floor space in a geographic region for expansion, leasing wholesale space is often the fastest and most cost-effective option.  The floor space is already built-out, so all it takes is a relatively short amount of time and the money necessary to provision the space.

A wholesale data center provider is able to offer its tenants immediate accessibility to a wide variety of Internet carriers.  Some wholesale data centers are known as an IBX (Internet Business Exchange).   IBX wholesale facilities are typically found in large metro areas, along the cross-points of connectivity lines.  Large businesses that require substantial quantities of bandwidth, or that are seeking super low latency response times, flock to data center providers located in these IBX wholesale facilities.

There is no specific square-footage requirement for a data center provider to be labeled a wholesale data center provider. But to maximize profitability, a wholesale provider’s facility size would typically start with at least 50,000 square feet of space and could exceed a million square feet of sellable space. There are many wholesale data center providers in the United States.

Below is a short list of a these providers: