AIS Has 50% Market Share in San Diego (451 Research)

Brian Wood Blog

Good news: 451 Research, the expert source of analysis for all things data center, just published their annual “North American Multi-Tenant Datacenter Supply” report for Emerging Major Markets — 2013.

How did AIS fare? Quite well, actually. As in past years, AIS is the dominant data center provider in San Diego.

According to 451 Research, the AIS market share figure is 50%.

451 San Diego Market Share 2013 v2

The Emerging Major Markets report covers market sizes #11 through #20. San Diego falls into this category as the 17th largest data center market in the country. Here are some relevant snippets from the section on San Diego:

451 Research identified nine datacenter providers in San Diego, with American Internet Services having the highest market share in terms of operational square footage in five datacenter facilities.”

“San Diego has the 17th largest metropolitan area population-wise in North America and sees steady demand for multi-tenant datacenters. The economy in the city has a number of drivers, including its deep-water port and the fact that it hosts the largest naval fleet in the world. Trade is an important factor, thanks to the border with Mexico, while tourism is also a key sector. San Diego also has a number of growing technology firms that provide demand for multi-tenant datacenter facilities, including wireless, life sciences, pharmaceutical research and health services.”

“The San Diego metro continues to face a power shortfall after a small radioactive leak at the San Onofre nuclear power plant in January 2012, when the 2,200-megawatt power plant was shut down. Early this summer, Southern California Edison announced that it was permanently shutting down the troubled San Onofre nuclear plant. Utility and state regulators must now determine who will pay more than $1 billion in costs. San Diego Gas & Electric (SDG&E) had sought increases up to 20%, but the state ultimately approved increases that could climb as high as 12% for heavier users of electricity.

The risk of power blackouts has brought some additional demand to datacenter providers in the city and San Diego is expected to see steady growth by datacenter providers over the next several years with demand continuing to outpace the typical smaller supply additions in this market.”