Trends in colocation – what’s shaping the future?

These are becoming pivotal factors in vendor selection, with clients increasingly prioritising strong sustainability credentials. The use of renewable energy, efficient cooling systems, and participation in sustainability initiatives, such as GRESB, not only help verify our environmental commitments but also provide valuable insights for continuous improvement – growing regulatory pressures and client demand are driving the need for solutions that minimise environmental impact, making sustainability a critical focus for businesses aiming to remain competitive.

Hybrid IT variously combining on premise resources, public cloud, private cloud, and colocation to create a flexible and efficient infrastructure are becoming increasingly popular. Hybrid architectures offer organisations the ability to optimise workloads based on factors such as cost, compliance, performance, and scalability. We play a key role in this ecosystem by delivering seamless cloud connectivity, including direct on-ramps to hyperscale cloud platforms like AWS, Azure, and Google Cloud, alongside robust interconnection ecosystems that enhance operational efficiency and agility.

Whilst many envision data centres as massive constructions in remote locations, there is often a need to process data closer to its source, allowing client IT teams easier access to IT infrastructure. And from a networking perspective, proximity is key – the closer you are, the lower the latency. This has driven the demand for smaller, more localised data centres situated nearer to end users. To support Manchester’s position as a leading UK tech hub, we are proud to have recently completed the construction of MCR2, of one of the only two newly built data centres in Manchester in recent times.

Data centre clients are increasingly drawn to facilities that offer a rich ecosystem including carriers, cloud providers, and other partners who play a crucial role in supporting clients throughout their colocation journey. Peering points for major networks and carrier neutrality ensure flexibility and seamless connectivity, and value-added offerings such as disaster recovery, backup solutions, and network management help to reduce complexity, enabling clients to focus on their core business with confidence.

Much is being discussed about the impact of automation and AI in colocation, although the extent to which they actually directly impact data centre operations varies. When discussing AI in the context of data centres, there are two distinct aspects to consider. On one hand, AI is being implemented to enhance operational efficiency, with applications such as predictive maintenance, analytics, remote management, energy optimisation, and security monitoring. For example, AI-driven Building Management Systems (BMS) are increasingly used to oversee and optimise facility operations. On the other hand, the rise of AI also means larger and more complex workloads for data centres to manage, requiring infrastructure capable of supporting these demands.

In a world where the future remains uncertain, businesses require solutions that can adapt to their evolving needs. Colocation providers are increasingly catering to temporary requirements, such as the need to utilise outstanding budgets or support short-term projects. This is particularly valuable for education and research initiatives, where high-performance computing (HPC) workloads are often essential. By offering tailored solutions and scalable infrastructure, colocation providers are well-positioned to support these dynamic and specialised demands.

The rise of remote work, ongoing digital transformation, and the growth of data-intensive applications are all driving increased demand for colocation services. Businesses are seeking reliable, scalable infrastructure to support distributed teams, cloud adoption, and the processing of vast amounts of data. In such a competitive landscape, it is essential for colocation providers to differentiate themselves. This can be achieved through offering sustainable solutions, bespoke and flexible services, and delivering outstanding service management.