What is Edge Colocation?

Jun 01, 2020

What-is-Edge-ColocationAfter years of working in the high tech industry, it's easy to forget that not everyone understands or uses the acronyms and terms that we throw around on a daily basis. One of those terms is “edge colocation."

What is Edge Colocation?

Edge colocation is the practice of locating highly connected data centers in tier two markets that have been traditionally underserved by data center and telecom providers. Major metropolitan areas such as New York, San Francisco and Chicago have served as connectivity hubs for decades. A key requirement to being an edge data center is providing carrier density or access to a critical mass of internet services, content and networks. Edge data centers provide interconnected ecosystems to markets that have been neglected for decades. True edge data centers and traditional colocation models are used to cache popular content or web applications closer to users and, in effect, extend the edge of the internet.

In recent years, edge colocation has grown significantly as it supports bandwidth hungry markets such as Tampa, Nashville, New Jersey and Indianapolis.

A 2019 study by Global Market Insights found that the edge data center market was expected to experience a compound annual growth rate of 20.5% between 2019 and 2025. In North America, the banking, financial services and insurance industry is seeing a high adoption of edge colocation because of the rising demand for access to secure storage.  

Additional drivers of growth in edge colocation include:

  • Lower bandwidth costs for delivering rich content and streaming media to users outside of major metropolitan areas.
  • Lower latency service for users in tier two markets because streaming content is stored locally.

Content providers such as Google, Netflix and YouTube use Content Delivery Networks (CDNs) in edge data centers to improve the online experience of users and to significantly reduce transport costs. Learn how a content provider reduced connectivity costs and improved the online experience for its users in this case study.

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