UII UPDATE 228 | Q1 2024
Intelligence Update

Colocation and public cloud growth masks enterprise expansion

The colocation and public cloud sectors of the digital infrastructure industry continue to make headlines, with many organizations planning large-scale capacity expansion to meet rising demand. However, there is also a less public expansion underway — enterprises operators, for the third successive year, say they are going to invest in more data center capacity in 2024.

Results from the Uptime Institute Capacity Trends Survey 2023 reveal that 64% of enterprise operators are growing their data center capacity — a six percentage-point uptick from two years ago in 2021 (see Figure 1). Notably, one in five organizations in this group say they are expanding by more than 20% annually. This scale of expansion is difficult to implement without significant investment.

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