Making the Connection: Your Ecosystem Is Your Infrastructure – Interconnections – The Equinix Blog
Global deployment and market research data in GXI 2023 provides a geographic breakdown of interconnection bandwidth growth and interconnection benchmark insights. Here are select highlights from the findings worldwide and by region.
Service Provider deployments exceed Enterprise for now
Worldwide interconnection bandwidth is forecasted to grow at a 40% five-year compound annual growth rate (CAGR).
- Digitally mature Service Providers deploy on average 17 locations, with an average of eight core and nine edge locations. Edge locations are growing 1.5x faster than their digital core.
- In contrast, digital Enterprise leaders deploy in 10 locations, with a 60/40 split between core and edge. Edge locations are growing 2.3x faster than core.
- While Enterprise industries are forecast to consume 43% of interconnection bandwidth globally, they are starting to outpace Service Providers as Enterprises return to pre-pandemic growth rates.
Enterprise deployments forecast to surpass Service Provider deployments in Americas
The Americas region continues to lead the deployment of interconnection bandwidth and is forecast to grow at a 39% CAGR through 2025.
- For the first time, Enterprise sectors are forecast to reach a higher annual deployment than Service Providers.
- Growth rates for Enterprises show they are becoming digital providers. In 2025, Banking & Insurance will deploy more interconnection bandwidth than Network Providers, while Wholesale & Retail Trade will deploy more than Content & Digital Media.
- Service Providers will consume 56% of interconnection bandwidth overall, with Network Providers called out as both the largest users and the fastest growing.
Diversity in Americas core and edge locations
The large footprint of the Network, Cloud and Financial Services ecosystems continues to drive the majority of interconnection bandwidth, with 86% of bandwidth distributed across core locations.
- New York has 35% of the forecasted interconnection bandwidth, with a focus on business and ecosystem partners; conversely, in Washington, D.C., Cloud & IT and Hyperscale Providers make up 33%, with a focus on Network Providers.
- LATAM is showing the fastest growing core and edge locations, with Sao Paulo as the fastest growing core metro at a 46% CAGR, followed by Silicon Valley and Dallas.
- Los Angeles is the largest edge metro in the Americas, with Mexico City as the fastest growing edge metro. Also, Hyperscale Providers continue to show growth across all edge locations.
EMEA is forecast to lead with digital infrastructure deployments
Europe, the Middle East and Africa (EMEA) make up 25% of the global interconnection forecast and are predicted to grow at a 40% CAGR through 2025.
- Digital infrastructure deployment across core and edge locations in EMEA is 20–30% larger than in other regions, indicating a focus on hybrid deployments to fast-track digital-first strategies.
- GXI 2023 reveals that even with two-thirds of the infrastructure distributed across core locations, growth is slightly faster than edge, showing the demand for cloud adjacent solutions.
- All EMEA Service Provider segments are growing at a consistent 36% CAGR—higher than all other regions. Network Providers continue to be the largest users of interconnection bandwidth.
Subsea landing stations and metro edge are projected to lead growth in EMEA
Core locations in EMEA are growing at 40% CAGR making up 77% of the region’s forecast. Dubai, Madrid and Barcelona are the fastest growing edge locations, with network access as the primary use case.
