London Projected to be a Leading Metro for Enterprises Looking to Interconnect with Businesses, Partners and Ecosystems as Private Connectivity Forecast to Increase 4x Between 2019 and 2023.
LONDON, UK — October 13, 2020 — The latest Global Interconnection Index (GXI), an annual market study published by Equinix, shows that the COVID-19 pandemic has already had a dramatic effect on how businesses are planning their digital infrastructure initiatives over the next three years. According to this, the fourth volume of the report (Vol.4), digital service providers, within industries like telecommunications, cloud & IT services, content & digital media and technology providers, are forecast to increase private connectivity bandwidth 5x by 2023, driven by greater demands from enterprises to close digital gaps at the edge.
As the pandemic continues to accelerate the shift to digital, enterprises facilitating more remote working, such as telecommunications and cloud & IT providers, are expected to contribute to 54% of the total interconnection bandwidth growth in EMEA, outpacing other industries in the region. Frankfurt, Amsterdam, Paris and London are predicted to be the top metros in Europe for interconnection bandwidth growth, with the region as a whole expected to account for 23% (3,782 Tbps) of the projected global installed interconnection bandwidth.
The report also forecasts that overall interconnection bandwidth—the measure of private connectivity for the transfer of data between organizations—will achieve a 45% compound annual growth rate (CAGR) from 2019 to 2023, within the EMEA region. In London, interconnection bandwidth is expected to grow at the same CAGR as the wider EMEA region, to 1,337 Tbps. This growth is at least three times higher than Paris, and more than twice that of Amsterdam. This supports London’s vital position as a strategic interconnection hub for digital business looking to compete on a global scale, despite the UK’s recent departure from the European Union.
The expected growth is driven by digital transformation, and specifically by greater demands from enterprises extending their digital infrastructure from centralized locations to distributed edge locations. This comes as businesses scale and support real-time interactions by strategically interconnecting workflows closer to, and across people, things, locations, cloud and data. The capacity of this connectivity is equivalent to 64 zettabytes of data exchange, which is enough bandwidth for every human on the planet (7.8 billion) to transmit their full DNA sequence in an hour.
The GXI Vol.4 provides insight on how global macro trends and COVID-19 have impacted certain industry segments:
The GXI Vol. 4 delivers insights by tracking, measuring and forecasting growth in interconnection bandwidth—the total capacity provisioned to privately and directly exchange traffic, with a diverse set of partners and providers, at distributed IT exchange points inside carrier-neutral colocation data centres.
“As interconnected services, cloud providers, distributed cloud, edge services and SaaS offerings continue to proliferate, the rationale to stay only in a traditional data centre topology will have limited advantages. This is not an overnight shift, but an evolutionary change in thinking how we deliver services to our customers and to the business. This trend, coupled with the new reality that outside factors might limit physical access to the data centre (such as emergency quarantine), is driving new thinking in infrastructure planning. ”
“Across Europe, interconnection bandwidth within the banking and insurance sector is set to grow at a 37% CAGR to 310 Tbps by 2023. A key driver of this growth is the rapid adoption of cloud within the financial services industry—a trend that has accelerated significantly in recent years—and is transforming the way payments are moved between financial institutions. The use of cloud platforms is only set to grow as companies look to increase their as-a-service offerings and diversify their portfolio of cloud service providers. To keep pace with cloud adoption, Platform Equinix® gives us access to an unrivalled number of cloud providers, allowing us to provide our customers with secure real-time access to Bacs, CHAPS and Faster Payments.”
"With the pandemic creating a sudden global shift to remote and work-from-home practices, our customers have a renewed appreciation of the need for reliable networking solutions. Prioritizing digital transformations and cloud connectivity is imperative. Our top priority is to provide customers with differentiated solutions to drive business agility so they can achieve their goals and mitigate risks.”
“The COVID-19 pandemic has brought a massive wave of demand in the healthcare and life sciences sector. The immense need for urgent care has put additional stress on healthcare professionals across the country and forced many of them to adapt to new ways of providing care through virtual workspaces or online video consultations. As a result, the need for interconnection bandwidth has grown exponentially. It is predicted that by 2023, the level of interconnection bandwidth in the sector across EMEA will reach 113 Tbps, at a CAGR of 49%.
An integral part of our hybrid cloud connectivity platform is connection to Equinix Cloud Exchange Fabric® (ECX Fabric®). Underpinning the platform, ECX Fabric provides the flexibility to support healthcare companies with genuine multicloud strategies, while Equinix’s rich, extensive ecosystems and 200+ global data centres ensure we can interconnect to partners, clouds and digital ecosystems everywhere, especially at this crucial time."
“Digital leaders have to prepare for post-pandemic recovery by planning and implementing the right digital transformation initiatives now. We believe those that have a foundational infrastructure which helps bring together all the right places, partners and possibilities will gain a business advantage over the long term.”
“The COVID-19 pandemic has only accelerated the digital transformation journey that businesses across the region were already undergoing. Europe’s predicted 45% CAGR is indicative of the increased demands from enterprises to enhance their interconnection capacity in order to compete in an increasingly digital economy. It’s now even more critical for businesses to find innovative ways to interconnect with their customers and partners to gain a competitive advantage in an increasingly remote and dispersed environment.”
“This latest version of the GXI clearly showcases London’s importance as an international hub for enterprises looking to interconnect strategically with businesses, ecosystems and partners around the world. London is predicted to reach 1,337 Tbps of interconnection bandwidth by 2023. This figure is not only higher than other key European cities, it also surpasses that of many other major technology hubs such as São Paulo, Silicon Valley and Tokyo.”
About the Global Interconnection Index (GXI)
The Global Interconnection Index, published annually by Equinix, delivers insights that drive digital business advantage by tracking, measuring and forecasting growth in interconnection bandwidth—the total capacity provisioned to privately and directly exchange traffic with a diverse set of counterparties and providers at distributed IT exchange points. The Global Interconnection Index is the industry's only market study that projects how interconnection bandwidth growth will unfold through 2023. The report serves as a market baseline that analyzes the deployment profile of thousands of ecosystem participants using carrier-neutral colocation data center providers globally. This data was combined with local and regional market data (including macroeconomic trends, market demographics and industry concentrations) to form a weighted demand multiplier to assist in predicting growth and assess impact on digital business transformation. A detailed methodology description is included in the Global Interconnection Index.
Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today’s businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.
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 “IDC FutureScape Webcast: Worldwide Digital Transformation 2020 Predictions,” IDC, Doc # US46287720, May 2020
 “Your Data Center May Not Be Dead, but It’s Morphing,” Gartner, September 17, 2020