The Global Interconnection Index - Measuring Growth of the Digital Economy

VOLUME 1
MEASURING THE GROWTH OF THE GLOBAL DIGITAL ECONOMY
GLOBAL INTERCONNECTION INDEX

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GLOBAL
INTERCONNECTION
INDEX
1 Foreword
3 How it was created
4 Emergence
5 Evolution
6 Relevance
7 Bandwidth forecast
8 Regional view
9 Industry view
10 Enterprise use cases
11 Service Provider use cases
12 Firmographics
13 Maturity model
14 Global Interconnection Index 2020 forecast
15 United States bandwidth forecast
16 Europe bandwidth forecast
17 Asia-Pacific bandwidth forecast
18 Latin America bandwidth forecast
19 Methodology

1 #InterconnectionIndex | Equinix.com | © 2017 Equinix, Inc.
FOREWORD
An industry-first look at how
Interconnection Bandwidth is
shaping and scaling the global
digital economy.
As business models become increasingly distributed and dependent on the real-time engagement
of many more users, partners and service providers, a company’s ability to transform into a digital
business has become a matter of survival.
Organizations must take swift and decisive action to scale their digital platforms or risk extinction.
And the only way to do that is through dynamic, on-demand, anytime, anywhere Interconnection.
This means deploying IT traffic exchange points and provisioning Interconnection Bandwidth
to integrate direct private connections between counterparties and providers. These traffic
exchange points are hosted in carrier-neutral data center campuses with distributed, colocated IT
components. Without this vital fuel, digital business falters.
Interconnection’s role as an essential building block of the global digital economy permeates the
world around us. Interconnection scaled the internet, the web, and thriving digital ecosystems
like financial securities trading. In 2014 alone, Interconnection enabled cross-border data flows
that added $2.8 trillion to the world’s GDP, per McKinsey. And now it is enabling the rapid growth
of multicloud, giving rise to new ecosystems like the Internet of Things and propelling digital
business to outgrow the overall economy by 3X.
As crucial as Interconnection is to how digital business is conducted, it’s never been quantified.
The Global Interconnection Index, published by Equinix, changes this with industry-first
projections of how Interconnection growth and access will unfold through 2020. This in-depth
view arms businesses with the data-driven insight they need to consider their own Interconnection
strategy for digital business success.
The Index’s new global baseline tracks, measures and forecasts the growth of Interconnection
Bandwidth, a measure of the capacity to transfer traffic via direct, private Interconnection with a
diverse set of counterparties at distributed exchange points. For the first time, organizations can
see multidimensional projections of Interconnection Bandwidth requirements by region, industry,
use cases, firmographics and maturity model.
The worldwide reliance on Interconnection Bandwidth is growing rapidly as businesses competing
within this evolving landscape mature from exchanging traffic over a few connections through a
single network carrier as the intermediary, to activating multiple direct Interconnection exchange
points among a global ecosystem of providers and counterparties.
Continued on next page
IT’S SCALE OR FAIL IN THE GLOBAL DIGITAL ECONOMY

FOREWORD
CONTINUED
The Index projects that by the year 2020, the Interconnection Bandwidth used to conduct
scalable digital business will grow to over 5,000 Tbps, outpacing the growth of overall global IP
traffic, the internet and MPLS, today’s leading private network model.
To put this into context, consider what would be possible with this robust level of Interconnection.
You could:
• Transfer the entire printed content in the U.S. Library of Congress 3X in a single second
• Process nearly 550,000 electronic payments per minute–assuming the average value is $50,
that’s $27.5M per minute or $1.6B per hour
• Analyze and exchange the DNA sequence of the entire human population in 2.5 hours, unlocking
the possibility for new medical treatments and breakthroughs
The right Interconnection strategy has the power to make even the boldest business ambitions
a reality. But without it, organizations will lack the scale, agility, capacity, security and quality of
service they need to successfully conduct digital business around the globe.
The Global Interconnection Index provides important insight into this fundamental measure of
how digital business is conducted and equips companies with the forward-looking data they
need to measure, predict and stay ahead of their own Interconnection needs in an increasingly
connected future.
Interconnection fuels digital transformation by:
• Unlocking the ability to scale multicloud to its fullest potential
• Providing proximity to digital services to reduce latency and accelerate business interactions
• Empowering businesses to establish operational control over centralized and distributed digital
platforms
• Reducing cybersecurity risk by bypassing the internet and activating local security perimeters
Interconnection Bandwidth
is outpacing traditional
connectivity approaches
as it grows:
• Nearly 2X faster and 6X larger
than global IP traffic
• 10X faster than MPLS networks

The Global Interconnection
Index1
is the emergence of
a new global baseline.
Its goal is to track, measure and forecast
the growth in bandwidth required for direct
traffic exchanges which enable private
Interconnections among companies
supporting digital business.
HOW THE GLOBAL
INTERCONNECTION
INDEX WAS CREATED
INAUGURAL EDITION
OUR PROCESS
1
This report contains forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that
may cause actual events or results to differ materially from the estimates or the results implied or expressed in such forward-looking statements.
2
Utilized technology market intelligence from data sources including Forrester, IDC, 451 Research and Synergy Research Group
1 2 3 4CREATED
MARKET
BASELINE
ASSESSED
MARKET
CONDITIONS
CORRELATED
DEMAND
DRIVERS
BUILT
PREDICTIVE
MODEL
Analyzed the
adoption profile
of thousands of
carrier-neutral
colocation data
center providers
and participants
globally across
every region and
major metro2
Assessed local
and regional
market conditions,
including macro
economic trends,
market demo-
graphics
and industry
concentrations
Identified key
demand drivers
of digital business
that force the
distribution and
Interconnection
of IT components
within proximity
of users
Built a predictive
model to forecast
Interconnection
Bandwidth growth
by region, use
case and market
segment
Created a
stratified market
baseline across
industries,
regions and
company size
segmentation
Developed a
set of indicators
and local market
condition filters
to assist in
producing tailored
predictions
Produced a
weighted demand
multiplier to assist
in predicting
growth to factor
the impact of
digital business
transformation
Utilized market
baseline, applied
local market
condition filters
and factored
demand drivers
to derive forecast

People Locations
EMERGENCE
OVERVIEW OF
INTERCONNECTION
Interconnection emerged from the challenge to globally scale the internet.
This required the industry to solve how to exchange and transfer traffic among different
provider networks across different regions and countries.
Physical infrastructure meeting places, called Internet Exchanges, were created and hosted
inside carrier-neutral colocation data center campuses. The voluntary exchange of traffic
among providers became known as peering.
Over time, peering in carrier-neutral data center campuses evolved to become IT traffic exchange
points for all types of machine-to-machine traffic by integrating direct private connections of
counterparties with distributed IT components colocated. This is known as Interconnection.
Interconnection Bandwidth is defined as the total capacity provisioned to privately and
directly exchange traffic with a diverse set of counterparties and providers at distributed
IT exchange points.
BEFORE INTERCONNECTION 1
WITH INTERCONNECTION 2
Enterprise HeadquartersPhysical IT Traffic Exchange Point
Network
Carrier
Clouds Data
Carrier-neutral Data CentersNetwork Carriers
1
Constrained point-to-point connectivity, backhauling user traffic to central data center 2
Optimized, multipoint connectivity via direct private traffic exchange points between users and local services
Network Endpoint

EVOLUTION
HISTORY OF
INTERCONNECTION
The power of Interconnection has proven extensible, helping
to create the building blocks of the digital economy.
Interconnection enabled the web to scale. It solves performance and integration barriers, creating
the global electronic trading ecosystem; and provides an on-ramp to securely scale into the cloud.
Today, for companies in all industries, Interconnection helps integrate digital services with providers
and partners so they can interact in real time to consume and provide services digitally.
Networks directly
connected to other
networks to privately
exchange data traffic,
solve for regional
proximity and scale
the internet
Content and e-commerce
platforms directly
connected to networks
to privately exchange
data and content traffic,
place copies of websites
and content inside
exchange points and
scale the web
Buy-Side and Sell-Side
Exchange platforms
directly connected to
each other to privately
exchange market data
and trade traffic, place
trading engines inside
the exchange points and
scale the electronic
trading ecosystem
Cloud infrastructure
providers are enabling
direct connection access
data and workload traffic,
solve for access proximi-
ty and scale the cloud-
enterprise ecosystem
Enterprises across all
industry segments are
beginning to directly
connect to each other
traffic, create new
ecosystems and scale
digital business
INTERNET WEB ELECTRONIC TRADING CLOUD DIGITAL BUSINESS
Networks E-commerce Content Exchanges Clouds Enterprises Traffic Exchange Connection

TREND INSIGHT IMPLICATION NEED
Digital
Technology
Use
Digital technology use
can create $1.36 trillion
in additional economic
output in the world’s top
10 economies in 2020 1
Digital technologies
force the need to support
real-time interactions
which enable digital
value capture
Real-time interactions
require the Interconnec-
tion of people, locations,
clouds and data
Urbanization Approximately two
billion people are expected
to migrate to major cities
by 2030, creating as many
as 50 urban metro hubs 2
Urbanization is transform-
ing global demographics,
creating a proximity need
for digital services
Supporting urban density
requires the Interconnec-
tion of applications, data,
content and networking
colocated in metro hubs
Data
Sovereignty
More than 18 major
countries globally block
the transfer of data related
to accounting, tax and
financial information 3
Compliance with data
regulations requires the
need to maintain data
locally while being used
globally
Managing compliance
requires the Intercon-
nection of data storage,
analytics and networking
colocated in business
regions that require
compliance
Cybersecurity
Risk
By 2020, 60% of digital
businesses will suffer ma-
jor service failures, due to
the inability of IT security
teams to manage digital
risk 4
Cybersecurity risk
permeates across the
physical and digital
platforms of the business
Managing cybersecurity
risk requires the Intercon-
nection of applications,
data, networking and
security controls colocat-
ed across regions to cre-
ate necessary safeguards
Global Trade
of Digitally
Deliverable
Services
Trade in digitally
deliverable services has
more than doubled over
the past decade, compris-
ing approximately 50% of
total services exports 5
Digital trade flows are
creating global business
and data processes
involving customers,
partners and employees
Solving the shift to digital
flows requires an inter-
connected mesh of metro
hubs and colocated digital
capabilities where trade
flows. This is critical to
participation in a digital
ecosystem
As digital business
transformation increasingly
becomes a mandate for
survival in the digital era,
Interconnection grows
particularly relevant.
Key macro, technology and regulatory
trends are changing the interaction
between businesses, consumers and
physical infrastructure.
The world is rapidly going digital,
and Interconnection is a critical
building block for success.
RELEVANCE
INDUSTRY TRENDS PRIORITIZING NEED
FOR INTERCONNECTION
INDUSTRY TRENDS
1 Accenture Digital Density Index 2
Connectography (Parag Khanna) 3
ITIF Cross Border Data Flows Report
4
Gartner, Special Report: Cybersecurity at the Speed of Digital Business, 30 August 2016 5
McKinsey Digital Globalization Report

1000 2000 3000 4000 5000Tbps
2016
2020
Service Provider** Use Case
1000 2000 3000 4000 5000Tbps
2016
2020
Industry Segment
1000 2000 3000 4000 5000Tbps
2016
2020
Region
Enterprise* Use Case 1000 2000 3000 4000 5000Tbps
2016
2020Financial Service Providers
Supply Chain Partners
Content Providers
Cloud and IT Providers
Network Providers
Enterprise
Service Providers
US
EU
AP
LATAM
Financial Service Providers
Supply Chain Partners
Content Providers
Cloud and IT Providers
Network Providers
Interconnecting to...
Interconnecting to...
is defined as the total capacity
provisioned to privately and
directly exchange traffic with
a diverse set of counterparties
and providers at distributed
IT exchange points.
By 2020, Installed Interconnection
Bandwidth capacity is expected to
reach 5000 Tbps, a fourfold increase
from 2016, with double-digit growth
across all industries and use cases.
BANDWIDTH FORECAST
2020 FORECAST
INTERCONNECTION BANDWIDTH HIGHLIGHTS
* Enterprises are defined as companies with a primary business purpose
including Banking and Insurance, Manufacturing, Securities Trading,
Business Professional Services, Energy Utility, Retail, Healthcare and
Government
** Service Providers are defined as companies with a
primary business purpose including Telecommunications,
Cloud and IT, along with Content and Digital Media

5000
4000
3000
2000
1000
2017 2020201920182016
CAGR: +45% 2016
2020
500 1000 1500 2000
92
626 (+62%)
335
1451 (+44%)
472
1795 (+40%)
Tbps
246
1120 (+46%)
29%
8%
22%
41%
13%
22%
29%
36%
2016 2020
2016
2020
2016
2020
2016
2020
Tbps
REGIONAL VIEW
INTERCONNECTION BANDWIDTH*
GROWTH BY 2020
United States is expected to grow 40% per annum to reach 1,800 Tbps of installed capacity
by 2020, contributing more than a third (36%) of Interconnection Bandwidth globally.
Europe is expected to grow 44% per annum to reach 1,450+ Tbps by 2020, contributing
more than a quarter (29%) of Interconnection Bandwidth globally.
Asia-Pacific is expected to grow 46% per annum to reach 1,120 Tbps of installed capacity,
approaching nearly a quarter (22%) of Interconnection Bandwidth globally.
Latin America is expected to grow 62% per annum to reach 620+ Tbps of installed capacity,
contributing 13% of Interconnection Bandwidth globally.
WORLDWIDE GROWTH REGIONAL GROWTH REGIONAL MIX
EU AP LATAMUS
A radical reinvention of
enterprise IT is underway.
Interconnection Bandwidth is expected
to grow at a rapid pace over the next
four years with growth across all
regions predicted to grow 40%
per annum or greater.
* Interconnection Bandwidth is defined as the total capacity provisioned to privately
and directly exchange traffic with a diverse set of counterparties and providers at
distributed IT exchange points.

Banking and Insurance is expected to grow 61% per annum and reach 955+ Tbps of
Interconnection Bandwidth capacity by 2020.
Telecommunications is expected to grow 27% per annum and reach 825+ Tbps of
Interconnection Bandwidth capacity by 2020.
Cloud and IT is expected to grow 39% per annum and reach 820 Tbps of Interconnection
Bandwidth capacity by 2020.
Manufacturing is expected to grow 54% per annum to 540 Tbps of Interconnection
Bandwidth capacity by 2020.
Emerging High-growth Segments include Business Professional Services, Energy,
Retail and Healthcare, and are expected to grow their use of Interconnection Bandwidth
capacity by more than 66% by 2020.
INDUSTRY VIEW
GROWTH BY 2020
SERVICE PROVIDERS CONNECTING TO INDUSTRY TYPE
200 400 600 800 1000
Banking Insurance 61% 19%
Telecommuncations 27% 17%
Cloud IT Services 39% 16%
Manufacturing 54% 11%
Securities Trading 41% 10%
Content Digital Media 36% 8%
Business Prof. Services 64% 6%
Energy Utility 73% 4%
Wholesale Retail 62% 4%
Healthcare Life Sciences 68% 2%
Government Education 62% 0.5%
Other 68% 2.5%
Installed Capacity (Tbps)
2020
MIX
CAGR
16-20
826
820
540
474
420
958
297
218
189
100
23
127
* Interconnection Bandwidth is defined as the total capacity provisioned to privately
and directly exchange traffic with a diverse set of counterparties and providers at
distributed IT exchange points.
LATAMEU APUS
Digital is disrupting all industries,
forcing companies to transform
their business and IT infrastruc-
ture strategies to compete.
Interconnection is emerging pervasively
to scale digital business transformation
with growth projected across all major
industries.

ENTERPRISE
USE CASES
GROWTH BY 2020
2016 2020
Highlights:
• All use cases are projecting strong
double-digit growth by 2020
• Enterprises Interconnecting to Clouds use
case is projected to grow the fastest at 160%
CAGR, becoming the second-largest use case
share of Interconnection Bandwidth by 2020
• Enterprises Interconnecting to Financial
Service Providers is projected to grow
38% per annum, reaching 300+ Tbps of
Interconnection Bandwidth by 2020 as
digitization of the industry evolves from
trading to including banking, insurance
and wealth management
Enterprise Interconnection Use Cases:
• Interconnecting to Network Providers:
to rewire network topology for digital
• Interconnecting to Cloud and IT Providers:
to deliver digital services on demand
• Interconnecting to Financial Service
Providers: to transact or exchange
payments digitally
• Interconnecting to Supply Chain Partners: to
collaborate digitally with business partners
• Interconnecting to Content Providers:
to enable rich digital experiences for
their users
USE CASES: ENTERPRISES INTERCONNECTING TO...
100 200 300 400 500 600 CAGR
Network
Providers
52% 68%
Cloud IT
Providers
160% 19%
Financial Service
Providers
38% 11%
Supply
Chain Partners
73% 2%
Content
Providers
48% 1%
88
320
5
45
6
28
1986
372
12
2020
MIX
547
Enterprises in these business
categories are all striving
to digitize their business
through individual use cases.
For purposes of this index, Enterprise
use cases are defined as enterprises
with common purposes in these areas:
Banking and Insurance, Manufacturing,
Securities and Trading, Business and
Professional Services, Energy and Utility,
Retail, Healthcare and Government.
* Interconnection Bandwidth is defined as the total capacity provisioned to privately and directly exchange
traffic with a diverse set of counterparties and providers at distributed IT exchange points.
See page 14 for more information implementing Interconnection use cases

SERVICE PROVIDER
USE CASES
GROWTH BY 2020
100 200 300 400 500 600 CAGR
Network
Providers
28% 71%
Cloud IT
Providers
70% 12%
Financial Service
Providers
34% 7%
Supply
Chain Partners
33% 2%
Content
Providers
49% 8%
46
148
13
40
35
170
1459
537
30
248
2020
MIX
2016 2020
Highlights:
• All use cases are projecting strong
double-digit growth by 2020
• Service Providers Interconnecting to
Clouds use case is projected to grow
the fastest at 70% CAGR, becoming the
second-largest use case share of
Interconnection Bandwidth by 2020
• Service Providers Interconnecting to ontent
Digital Media use case is projected to
grow 49% per annum, reaching 170 Tbps
of Interconnection Bandwidth by 2020 as
digitization is transforming the content
production and distribution value chain
Service Provider Interconnection Use Cases:
• Interconnecting to Network Providers: to
extend network coverage and scale for digital
• Interconnecting to Cloud and IT Providers:
to provide cloud-native digital services
• Interconnecting to Financial Service
Providers: to transact or exchange
payments digitally
• Interconnecting to Supply Chain Partners: to
collaborate digitally with business partners
• Interconnecting to Content Providers:
to enable rich digital experiences for
their customers
USE CASES: SERVICE PROVIDERS INTERCONNECTING TO...
See page 14 for more information implementing Interconnection use cases
Service Providers in these
business categories are all
striving to digitize their business
through individual use cases.
For the purposes of this index, Service
Provider use cases are defined as those
with common purposes in these areas:
Telecommunications, Cloud and IT, and
Content and Digital Media.

250
150
50
Interconnection Bandwidth Gbps
Number of Countries
1-2 3-4 5-10 11+
37
75
147
213
REGIONAL MIX
1-2 3-5 6-10 11-20 21+
30
20
10
Number of Sites
10 12 14
17
23
REGIONAL MIX
$50M $50M-$1B $1B-$10B $10B
400
300
200
100
Revenue
29
71
149
323
REGIONAL MIX
1-50 51-100 101-500 501-1000 1000+
200
150
100
50
Number of Employees
27
41
52
104
180
REGIONAL MIX
1-2 3-5 6-10 11-14 15+
Number of SaaS Providers
59
200
150
100
50
REGIONAL MIX
123
178
64
32
REGIONAL MIX
1k 1k 5k 20k 50k 100k 500k
Technology Spend
Interconnection Bandwidth Gbps1400
1200
1000
800
600
400
200
Hosting DDoS/WAF CDN DNSGTM
3290
1
USERS
Average Interconnection
Bandwidth by Revenue and
Number of Employees 2
LOCATIONS
Bandwidth by Geographical
Presence 3
USE OF DISTRIBUTED IT SERVICES
Bandwidth by Number of
Distributed IT Services
FIRMOGRAPHICS
GROWTH BY 2020
Firmographic profiling shows a direct correlation of Interconnection
Bandwidth adoption by enterprises based on three categories—Size,
Geographical Presence and Use of Distributed IT Services.
• The larger the company, the greater the number of Interconnections
used, and there is a requirement for more Interconnection Bandwidth
• The broader a business’ physical presence, the greater the number of Interconnections
used, and there is a requirement for more Interconnection Bandwidth
• The more extensively a firm employs distributed IT services, the greater the number of
Interconnections used, and there is a requirement for more Interconnection Bandwidth
** Hosting—third-party hosting of application and infrastructure; DDos/
WAF—Distributed Denial of Service Web Application Firewall;
GTM—Global Traffic Management; DNS—Domain Naming Service;
CDN—Content Distribution Network
**
* Interconnection Bandwidth is defined as the total capacity provisioned
to privately and directly exchange traffic with a diverse set of counter-
parties and providers at distributed IT exchange points.

Density 1 10’s +/- 100’s +/- 1000’s +/-
Need
Solve
latency
Solve
complexity
Solve
scale
Solve
integration
Purpose
Shorten distance
between users
and services
Segment
localize traffic
via single
exchange point
Adjacently
deploy critical
security and
data services
Create a meeting
place to collaborate
with customers,
partners and
providers
Value
Enhance
user experience
Reduce cost
and time to
connect
New business
capabilities
New business
opportunities
growth of an individual firm
can be projected based on
its maturity of adoption.
As described on page 5 of the Index,
the evolution of Interconnection began
with the private exchange of traffic over
a single Interconnection and progressed
to multiple Interconnections, duplicating
across multiple locations and finally matur-
ing to global ecosystem Interconnections.
Using the Interconnection Maturity Model,
any company can start to plan for its
Interconnection Bandwidth needs.
First, a firm must identify:
• # of counterparties in initial location
• # of counterparties in each location
of business presence
Second, a firm must determine:
• Need for Interconnection
• Purpose of Interconnection
• Value of Interconnection
Finally, a firm must confirm which
IT deployment patterns need to be
implemented in each location adjacent
to the point of Interconnection. See
www.IOAKB.com for further guidance.
ENTERPRISE ADOPTION
BY COUNTERPARTY
INTERCONNECTION GROWTH
BY PROFILE
INTERCONNECTION MATURITY MODEL
Interconnection
Node
Cluster of
Interconnection
Nodes
Ecosystem of
Interconnection
Nodes
InterconnectionDensity
Interconnection Capability
Individual
Interconnection

Total Interconnection
Bandwidth is expected to
grow 45% per annum by 2020.
A radical reinvention of Enterprise IT is
underway, with Interconnection Bandwidth
between companies, industries, business
partners and service providers set to grow
at a rapid pace over the next four years.
By 2020, Interconnection Bandwidth is
projected to grow more than fourfold
from 2016, translating into 5,000 Tbps
of installed bandwidth capacity, with
double-digit growth across all
industries and use cases.
2020 FORECAST
GLOBAL INTERCONNECTION
BANDWIDTH* GROWTH BY 2020
2016 2017 2018 2019 2020 CAGR
By Industry
Banking Insurance 144 230 367 590 958 61%
Telecommunications 319 409 523 662 826 27%
Cloud IT Services 221 314 445 607 820 39%
Manufacturing 96 147 226 348 540 54%
Securities Trading 119 160 224 322 474 41%
Content Digital Media 121 170 235 316 420 36%
Business Professional Services 41 66 108 179 297 64%
Energy Utility 24 43 74 128 218 73%
Wholesale Retail Trade 27 44 71 115 189 62%
Healthcare Life Sciences 13 21 35 59 100 68%
Government Education 3 5 9 14 23 62%
Other 16 27 46 76 127 68%
Total Industry 1,144 1,636 2,363 3,417 4,991 45%
By Use Cases
Enterprise Use Cases
Interconnecting to Network Providers 372 571 880 1,341 1,986 52%
Interconnecting to Cloud IT Providers 12 31 80 209 547 160%
Interconnecting to Financial Service Providers 88 122 168 232 320 38%
Interconnecting to Supply Chain Partners 5 9 17 29 45 73%
Interconnecting to Content Providers 6 9 14 21 28 48%
Total Enterprise Use Cases 483 743 1,159 1,833 2,926 57%
Service Provider Use Cases
Interconnecting to Network Providers 537 703 913 1,167 1,459 28%
Total Service Provider Use Cases 660 893 1,203 1,584 2,065 33%
Total Use Cases* 1,144 1,636 2,363 3,417 4,991 45%
Region
US 472 654 913 1,275 1,795 40%
EU 335 473 681 987 1,451 44%
AP 246 355 519 759 1,120 46%
LATAM 92 154 249 395 626 62%
Total Region 1,144 1,636 2,363 3,417 4,991 45%
INTERCONNECTION INSTALLED BANDWIDTH CAPACITY (TBPS)

UNITED STATES (US)
NEW YORK | CHICAGO | WASHINGTON, D.C. | SILICON VALLEY
INTERCONNECTION
BANDWIDTH GROWTH* 2020
The United States is expected to
grow 40% per annum to reach 1,800
Tbps of installed capacity by 2020,
contributing more than a third (36%)
of Interconnection Bandwidth globally.
The United States is the largest and most advanced
region. The market had an early head start in terms
of Interconnection adoption, with places like Ash-
burn in Northern Virginia hosting the largest con-
centration of network participants and becoming
a hotbed for most of the world’s internet traffic.
Despite being an early adopter of Interconnec-
tion, growth in the US is expected to further
accelerate by 300 basis points to 40% by 2020.
• US Interconnection Bandwidth is expected to
reach 1,795 Tbps at 40% CAGR by 2020, driven
by strong anticipated growth in Chicago (42%
CAGR) and New York (40% CAGR)
• Banking and Insurance is expected to
be the largest industry segment driving
Interconnection growth in the US, accounting
for approximately 22% of the overall market
by 2020, overtaking Telecommunications
• The Enterprise vertical is expected to account for
55% of total Interconnection, up from 41% in 2016
• Over 82% of Enterprises’ bandwidth is
expected to be dedicated to two use cases:
Interconnecting to Network and to Cloud
by 2020
• The four largest metros of provisioned
Interconnection Bandwidth capacity—New York,
Chicago, Washington, D.C., Silicon Valley—
currently make up more than 70% of the total
market in North America and are expected to
sustain growth around 40% annually until the
end of the forecast period
2016 2017 2018 2019 2020 CAGR
By Industry
Manufacturing 45 66 100 153 240 52%
Energy Utility 2 4 6 9 16 59%
Other 5 7 11 17 28 57%
Total Industry 472 654 913 1,275 1,795 40%
By Use Cases
Interconnecting to Network Providers 136 200 294 431 609 45%
Total Enterprise Use Cases 191 282 421 641 986 51%
Total Service Provider Use Cases 280 372 492 635 809 30%
Total Use Cases* 472 654 913 1,275 1,795 40%
By Metro
New York 103 141 195 274 391 40%
Chicago 83 116 166 236 339 42%
Washington, D.C. 87 121 166 231 323 39%
Silicon Valley 68 94 131 183 255 39%
Total Metro** 341 472 658 924 1,308 40%
** These are the top metros and not
inclusive of all metros.

EUROPE (EU)
LONDON | FRANKFURT | AMSTERDAM | PARIS
INTERCONNECTION
Europe is expected to grow 44%
per annum to reach 1,450+ Tbps
by 2020, contributing more than
a quarter (29%) of Interconnection
Bandwidth globally.
Europe’s growth will be driven by a number
of factors, including data sovereignty and the
need for European businesses to exchange
information with other businesses in-region;
the evolution of the European public peering
model, including more private direct connections
among organizations; and the rapid economic
development in the Middle East and Africa.
• EU’s Interconnection Bandwidth is expected
to quadruple in size, at 44% CAGR
• While London is expected to remain the
largest Interconnection market in Europe,
Frankfurt is expected to overtake Amsterdam
as the second-largest Interconnection
market in Europe, benefitting from
strong enterprise demand
• Banking and Insurance is expected to
add 200+ Tbps of bandwidth by 2020,
a greater than sixfold increase, catapulting
it ahead of Cloud and IT Services, with
Telecommunications narrowly retaining
the lead
• Of all the regions, the Enterprise segments
are expected to capture the highest
bandwidth share by 2020, reaching 63%
total bandwidth share in the EU
2016 2017 2018 2019 2020 CAGR
By Industry
Manufacturing 16 25 39 60 92 54%
Energy Utility 12 20 33 54 89 65%
Other 5 9 16 28 47 75%
Total Industry 335 473 681 987 1,451 44%
By Use Cases
Total Use Cases* 335 473 681 987 1,451 44%
By Metro
London 114 159 227 330 486 44%
Frankfurt 51 74 110 165 252 49%
Amsterdam 59 83 118 168 242 42%
Paris 30 42 59 84 120 41%
Total Metro** 254 357 514 747 1,100 44%

ASIA-PACIFIC (AP)
SINGAPORE | SYDNEY | HONG KONG | TOKYO
INTERCONNECTION
Asia-Pacific is expected to
grow 46% per annum to reach
1,120 Tbps of installed capacity,
approaching nearly a quarter
(22%) of Interconnection
Bandwidth globally.
Asia-Pacific region is expected to overtake
the US and EU as the largest regional economy.
This is consistent with the Index forecast for
Interconnection Bandwidth, as the region is
predicted to outpace both US and EU by 2020.
• AP’s Interconnection Bandwidth is expected
to grow more than fourfold with 46% CAGR
through 2020 to 1,120 Tbps
• Cloud and IT services providers is expected
to overtake Telecommunications providers
as the largest users of Interconnection
Bandwidth by 2018
• Banking Insurance, growing at 71% CAGR,
is expected to share 13% of the total
Interconnection Bandwidth by 2020,
compared to only 7% in 2016, making it the
third-largest industry overall by 2020
• Energy Utility is expected to grow the
fastest (82% CAGR), resulting in a market
share increase from 3% in 2016, to 8% in 2020.
Manufacturing’s Interconnection Bandwidth is
expected to grow by more than 5X by 2020,
positioning it as the second-largest Enterprise
industry behind Banking
• Global Interconnection Index analysis predicts
metros from China are likely grow into top
metros in future years
2016 2017 2018 2019 2020 CAGR
By Industry
Manufacturing 26 39 60 91 140 52%
Other 5 8 14 22 37 65%
Total Industry 246 355 519 759 1,120 46%
By Use Cases
Total Use Cases* 246 355 519 759 1,120 46%
By Metro
Singapore 60 85 122 176 256 43%
Sydney 40 58 83 119 173 44%
Hong Kong 29 43 65 97 149 51%
Tokyo 30 43 62 90 132 45%
Total Metro** 159 229 332 482 710 46%

LATIN AMERICA (LATAM)
SÃO PAULO | RIO DE JANEIRO | MEXICO CITY | BUENOS AIRES
INTERCONNECTION
Latin America is expected
to reach 626 Tbps of installed
capacity, achieving 13% of
globally by 2020.
Latin America is the smallest region in
terms of Interconnection Bandwidth but is
growing the fastest, as more infrastructure
gets built (data centers, submarine cables)
and in-region policy becomes more busi-
ness-friendly.
• LATAM is expected to be the
fastest-growing region in terms of
Interconnection Bandwidth, growing
at a 62% CAGR through 2020
• All industry verticals are expected to
witness a high double-digit (50%)
CAGR except Telecommunications, which
started at a high base. Energy Utility is
expected to lead all segments, growing
by 21X from 2016 through 2020
• Banking Insurance is expected to
overtake Cloud and IT Services as the
largest segment, accounting for 27%
of LATAM Interconnection Bandwidth
in 2020
• Consistently across both Enterprise
and Service Providers, the primary use
case for Interconnection Bandwidth
is to connect to Cloud and IT
Service Providers
2016 2017 2018 2019 2020 CAGR
By Industry
Manufacturing 9 16 27 43 67 66%
Healthcare Life Sciences 0.46 0.98 2 3 6 89%
Government Education 0.04 0.08 0.16 0.27 0.46 83%
Other 1 3 5 9 15 79%
Total Industry 92 154 249 395 626 62%
By Use Cases
Total Use Cases* 92 154 249 395 626 62%
By Metro
São Paulo 27 49 82 133 213 68%
Rio de Janeiro 14 25 42 66 102 65%
Mexico City 14 23 35 55 87 58%
Buenos Aires 10 16 25 40 63 60%
Total Metro** 65 112 185 295 466 62%

NUMBER OF
COLOCATION
CUSTOMERS
X
AVERAGE #
OF PRIVATE
CONNECTIONS /
CUSTOMER
X
PROVISIONED
BANDWIDTH
CAPACITY/
INTERCONNECTION
=
ESTIMATED TOTAL
PROVISIONED
INTERCONNECTION
BANDWIDTH
METHODOLOGY This initiative analyzes trends in colocation subscriber
growth, rates of Interconnection and the average bandwidth
used across Interconnections.
The methodology for sizing the global Interconnection market commenced with an analysis of thousands
of colocation ecosystem participants worldwide, across every region and major metropolitan area. The
research sample was additionally stratified across industries and company size segments, providing a
comprehensive breakdown of colocation subscribers, and their Interconnections, by company type.
Average Interconnections per company were applied to global counts of colocation participants to identify
the current volume of Interconnections worldwide. A variety of primary and secondary data sources were
used to accurately determine the size and future growth of global Interconnection. Research from several
technology market intelligence firms (Forrester, IDC, 451 Research and Synergy Research Group) were
used as inputs into the Global Interconnection Index.
Research data on a variety of technology markets, such as Software as a Service, public and hosted private
cloud services, cloud IT infrastructure and hybrid cloud investments, was analyzed to identify strong correla-
tions with investments in colocation and Interconnection. Predictive models were used to forecast growth
in company Interconnection Bandwidth by region and metropolitan area, driven by analyst projections of
growth in enterprise spending on key technologies such as cloud products, data and infrastructure services.
The methodology used to estimate provisioned peak capacity builds upon the current and forecasted
growth in Interconnection Bandwidth worldwide. The peak capacity, measured in gigabit per second, was
identified for each of the connections used by the companies in this study’s research sample. The estimated
provisioned peak capacity, measured in gigabit per second, was identified for each Interconnection use by the
companies in this study’s research sample. Additionally, an increase in the estimated provisioned peak ca-
pacity to support projected growing Interconnection to counterparties and providers was projected for this
analysis. The Index applied average provisioned peak capacity by estimated Interconnection to counterpar-
ties and providers worldwide to estimate the provisioned peak capacity by use case.

Every business can and should leverage Interconnection to stay competitive in the digital
age. Start with the Global Interconnection Index, a new global baseline to track, measure and
forecast in Interconnection Bandwidth. See all the detailed trends, insights and implications of
Interconnection among your peers and around the world—and then take the next step.
DOWNLOAD THE GUIDE

The Global Interconnection Index - Measuring Growth of the Digital Economy

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